Recording a Lower of Cost or Market (LCM)adjustment Involves Which

question 6

Multiple Choice

Recording a Lower of Cost or Market (LCM) adjustment involves which of the following generic journal entries?

• A) Debit Sales Revenue and Inventory
• B) Debit Cost of Goods Sold and credit Inventory
• C) Debit Loss on Goods Sold and credit Inventory
• D) Debit Retained Earnings and credit Inventory

---

Definitions:

Viscosity

A measure of a fluid's resistance to flow, describing how thick or sticky the fluid is.

Hematocrit

The percentage of total blood volume made up of red blood cells.

Pressure

The force exerted per unit area.

Compliance

In a medical context, compliance refers to the ability of blood vessels or other tubular organs to expand in response to increased pressure or volume, reflecting their elasticity.