Never Company Developed the Following Information About Its Inventories in Applying

question 29

Multiple Choice

Never Company developed the following information about its inventories in applying the lower-of-cost-or-net realizable value (LCNRV) basis in valuing inventories: If Never applies the LCNRV basis, the value of the inventory reported on the statement of financial position would be

• A)$354,000.
• B)$358,000.
• C)$350,000.
• D)$362,000.

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Definitions:

Validity

The extent to which a test or instrument measures what it is supposed to measure.

Accuracy

The degree to which a measurement, calculation, or specification conforms to the correct value or a standard.

Validity

The extent to which a test or instrument accurately measures what it is intended to measure.

Instrument Used

Refers to the specific tool or device employed in a study, experiment, or assessment to collect data or measure variables.