When the Lower of Cost or Market Rule/net Realizable Value

question 118

Multiple Choice

When the lower of cost or market rule/net realizable value requires an inventory adjustment,the:

• A)adjustment usually,but not always,reduces the book value of inventory.
• B)write-down is usually reported as a part of cost of goods sold.
• C)inventory adjustment is recorded in a contra-account called Inventory Allowances.
• D)write-down does not affect any of the financial statements.

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Definitions:

Police Power

The capacity of a state to regulate behaviors and enforce order within its territory for the betterment of the health, safety, morals, and general welfare of its inhabitants.

State Responsibility

The legal and moral obligation of a government to uphold and implement laws and to ensure public welfare and security.

Dangerous People

Individuals who are considered to pose a risk of harm or danger to others or society.

Involuntarily Commits

The legal process by which individuals are forced to undergo mental health treatment or hospitalization without their consent, usually due to them being a danger to themselves or others.