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:

Preserving Information

The process of maintaining or keeping information intact and accessible over time.

Vivid

Producing powerful feelings or strong, clear images in the mind.

Recollections

The act of remembering past events or experiences.

Short-Term Memory

Short-term memory is the capacity for holding a small amount of information in the mind in an active, readily available state for a short period.