One Hundred Units of Inventory on Hand at the End

question 10

Multiple Choice

One hundred units of inventory on hand at the end of the year are recorded at their cost of $10 each using LIFO. Current net realisable value is $8.00. How would the Gross profit be affected by the adjusting entry needed under lower- of- cost- and- net- realisable- value?

• A)Gross profit would go down by $80.
• B)Gross profit would go up by $200.
• C)Gross profit would not be affected.
• D)Gross profit would go down by $200.

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Definitions:

Motivation

The internal and external factors that stimulate individuals to take actions that lead to achieving a goal.

Expectancy Theory

A motivational theory suggesting that individuals are motivated to perform based on the expected outcome and the value associated with that outcome.

Incremental Goals

Small, manageable objectives set as steps towards achieving a larger goal, facilitating progress by breaking down complex tasks.

Skill Acquisition

The process of learning and developing new abilities or refining existing ones, often through practice and experience.