Inventory That Originally Cost $10,000 Was Written Down to Its

question 22

Multiple Choice

Inventory that originally cost $10,000 was written down to its net realizable value of $8,500 at the end of 2011. At the end of 2012, the net realizable value is determined to be $10,500. At what amount should the inventory be reported on the December 31, 2012 statement of financial position?

• A)$10,500
• B)$10,000
• C)$9,500
• D)$8,500

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Definitions:

Social Loafing

Social loafing is the phenomenon observed when individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Tips

Practical advice or suggestions aimed at improving a situation or accomplishing a task more effectively.

Profits

The financial gain obtained when revenue from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Deindividuation

A psychological state where an individual loses self-awareness and a sense of individuality, often in group contexts, leading to uninhibited behavior.