When Following U

question 66

Essay

When following U.S. GAAP, firms can use two methods to write down inventory to market, if needed.
Required:
1. What are the two methods called?
2. If there is a loss, describe the journal entry for both methods.
3. If there is a significant loss, which method is preferred? Why is this the case?

---

Definitions:

Intuitors

Individuals who prefer to rely on intuition and abstract thinking rather than factual information and practical details.

Empirical Data

is information obtained through observation or experimentation, used as a basis for forming conclusions or making decisions.

Theoretical Frameworks

Structured systems of concepts and theories that provide a foundation for understanding phenomena and guiding research.

Self-efficacy

An individual's belief in their ability to succeed in specific situations or accomplish a task.