Which One of the Following Reflects the Proper Inventory Valuation

question 102

Multiple Choice

Which one of the following reflects the proper inventory valuation on a company's balance sheet?

• A)Lower of original cost or face value
• B)Net realizable value
• C)Lower of cost or market
• D)Expected selling price

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Definitions:

Unassigned

Refers to funds, resources, or tasks not specifically allocated or designated for a particular purpose or to a particular entity.

Spendable

Refers to the amount of money that is available for use, not tied up in investments or savings.

Nonspendable

Refers to a fund balance category in governmental accounting, indicating funds that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact.

Restricted

Pertains to assets or securities that are not fully transferable until certain conditions, often regulatory, are met.