Which of the Following Events Would Likely Result in a Loss

question 101

Multiple Choice

Which of the following events would likely result in a loss recognized on the write-down of inventories?

• A) The additional costs resulting from an increase in oil prices caused by a hurricane destroying oil refineries.
• B) Purchasing another firm for more than the value of the fair market value of the assets.
• C) The value of perished products for a produce company using the allowance method for inventory
• D) A drop-in price of raw materials, once scarce, but now in ample supply.

---

Definitions:

Prototype

A prototype is an early sample, model, or release of a product built to test a concept or process.

Pre-

Often used as a prefix in programming and computer science, indicating "before" or "prior to" certain operations or processes.

Postcondition Comments

Comments placed in code to specify the state or the expected outcome after a certain block of code has been executed.

Postconditions

Conditions that must be true after the execution of a segment of code or program, used in formal methods to verify correctness.