The Proposition That the Outcome of a Majority Vote Is

question 96

Multiple Choice

The proposition that the outcome of a majority vote is likely to represent the preferences of the voter who is in the political middle is called

• A)the mean (or average)voter theorem.
• B)the voting paradox.
• C)the Arrow impossibility theorem.
• D)the median voter theorem.

Discern the differences and implications of applying LCM to individual items, categories, or total inventory.

Understand the theory and rationale behind the LCM rule, including conservatism.

Apply the gross profit method to estimate inventory cost.

Recognize specific accounting treatments for loss on non-cancellable purchase contracts.

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Definitions:

Inventory

The raw materials, work-in-progress goods, and completely finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Net Realizable Value

The estimated selling price of goods minus the costs of their sale or disposal, used in inventory valuation and accounts receivable.

Write-Down

A reduction in the book value of an asset when its market price falls below its carrying value on the balance sheet.

Gross Profit

The difference between revenue and the cost of goods sold, representing the basic profitability of the products or services sold by a company.