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:

Diminishment

The process of decreasing in size, importance, or intensity.

Secondary Sex Characteristics

Traits that appear at puberty, distinguishing biological sexes but not directly involved in reproduction, such as breast development in females and facial hair in males.

Pubic Hair

Hair that grows in the genital area as a secondary sex characteristic during puberty.

Gender

The social, psychological, and cultural attributes and opportunities associated with being male or female in a given society.