When the Lower of Cost and Net Realizable Value (LC&NRV)rule

question 47

Multiple Choice

When the lower of cost and net realizable value (LC&NRV) rule requires an inventory adjustment:

• A)the adjustment usually,but not always,reduces the book value of inventory.
• B)the write down is usually reported as a selling expense or as part of cost of goods sold.
• C)the inventory adjustment is recorded in a contra-revenue account called sales allowances.
• D)all of the answers are correct.

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Definitions:

Instrumental Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.

Self-Efficacy

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Age-Grading

The process of categorizing individuals or allocating roles based on their age.

Allowance

A fixed amount of money given regularly, typically for a specific purpose or to a dependent for their expenses.