Inventory Has a Cost of $475 000 and a Current

question 27

Multiple Choice

Inventory has a cost of $475 000 and a current selling price of $435 000. What amount should be reported on the financial statements and what concept or principle applies?

• A)$475 000, going concern
• B)$435 000, going concern
• C)$475 000, cost
• D)$435 000, conservatism

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Definitions:

International Business Correspondence

The exchange of written communication between parties from different countries for the purpose of business.

Conscious Buyers

Consumers who make purchasing decisions based on the social, environmental, and ethical implications of products.

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates.

Retail Chain

A series of stores owned and operated by a single company, selling similar or the same merchandise.