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:

Golgi Tendon Reflex

A protective mechanism that prevents muscle damage during excessive force generation by causing muscle relaxation.

Muscle Spindle

Three to 10 specialized muscle fibers supplied by gamma motor neurons and wrapped in sensory nerve endings; detects stretch of the muscle and is involved in maintaining muscle tone.

Reflex Arc

A neural pathway that mediates an immediate response to a stimulus without conscious brain involvement.

Interneuron

A type of neuron that serves as a relay or link between sensory and motor neurons within the central nervous system.