Why Are Inventories Stated at Lower-Of-Cost-Or-Net Realizable Value

question 18

Multiple Choice

Why are inventories stated at lower-of-cost-or-net realizable value?

• A) To report a loss when there is a decrease in the future utility.
• B) To be conservative.
• C) To report a loss when there is a decrease in the future utility below the original cost.
• D) To permit future profits to be recognized.

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Pertaining to society or its organization, often involving the collective behavior and interactions among individuals within a community.

Political

Pertaining to or concerned with the affairs of government, policy-making, or the administration of the state.

Kaleidoscopic

Having complex patterns of colors; changing rapidly in a dynamic, complex manner.

Surreal

Pertaining to surrealism, an artistic and literary movement that sought to release the creative potential of the unconscious mind by the juxtaposition of irrational images.