Which Statement Concerning Lower-Of-Cost-Or-Net-Realizable-Value (LCNRV) Is Incorrect

question 119

Multiple Choice

Which statement concerning lower-of-cost-or-net-realizable-value (LCNRV) is incorrect?

• A)LCNRV is an example of a company choosing the accounting method that will be least likely to overstate assets and income.
• B)Under the LCNRV basis, market does not apply because assets are always recorded and maintained at cost.
• C)The LCNRV basis is justified because of a decline in the selling price of the inventory item.
• D)LCNRV is applied after one of the cost flow assumptions has been applied.

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