Inventory That Originally Cost $10,000 Was Written Down to Its

question 80

Multiple Choice

Inventory that originally cost $10,000 was written down to its net realizable value of $8,500 at the end of 2012. At the end of 2013, the net realizable value is determined to be $10,500. At what amount should the inventory be reported on the December 31, 2013 statement of financial position?

• A) $10,500.
• B) $10,000.
• C) $9,500.
• D) $8,500.

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Definitions:

Power

The ability or capacity of an individual or group to influence or control the actions and outcomes within social or organizational contexts.

Legitimate Power

Authority that a person or a group holds that is accepted and recognized by others, often due to a formal position or role.

Reward Power

A type of power that comes from the ability to confer rewards on others for complying with one's wishes or directives.

Coercive Power

A form of power that is derived from the ability to punish or penalize others.