If the Cost of an Item of Inventory Is $80

question 52

Multiple Choice

If the cost of an item of inventory is $80 and the current selling price is $75, the amount shown in inventory on the balance sheet under the lower-of-cost-and-net realizable-value rule is:

• A)$75.
• B)$80.
• C)$155.
• D)$75 or $80.

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Definitions:

Sample Proportion

The fraction or percentage of a sample that exhibits a particular attribute or characteristic.

Probability

A measure of the likelihood that an event will occur, ranging from 0 (impossibility) to 1 (certainty).

Population Proportion

The fraction of the population that holds a particular trait, attribute, or characteristic of interest.

Standard Error

An estimate of the standard deviation of the sampling distribution of a statistic, often used to assess the precision of sample estimates of population parameters.