Under GAAP, Which of the Following Amounts Would Be Reported

question 34

Multiple Choice

Under GAAP, which of the following amounts would be reported as Merchandise Inventory on the balance sheet of a company if the cost of an item is $85 and the current replacement cost is $70?

• A)$155
• B)The average of $70 and $85
• C)$85
• D)$70

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Definitions:

Logical

Pertaining to or characterized by clear, sound reasoning and coherent thought.

Ethnocentrism

Assessing a foreign culture purely through the lens of one's own cultural norms and values.

Cultural Competency

The ability to understand, communicate with, and effectively interact with people across cultures by acknowledging and respecting their beliefs and behaviors.

Culture

The shared beliefs, values, norms, and practices that characterize a group of people, shaping their behavior and understanding of the world.