When Inventories Are Written Down Due to the Application of the Lower-Of-Cost-Or-Market

question 26

Multiple Choice

When inventories are written down due to the application of the lower-of-cost-or-market (LCM) rule,the account that is usually increased is

• A)Cost of Goods Sold.
• B)Inventories.
• C)Loss on Decline in Value of Inventory.
• D)Accumulated Depreciation-Inventory.

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Definitions:

Mental Events

Internal occurrences in the mind, such as thoughts, feelings, and perceptions, that can influence behavior.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually triggers a conditioned response.

Reflexively

In a manner that is automatic or without conscious thought, often as a direct response to a stimulus.

Secondary Reinforcer

A stimulus that has become reinforcing through its association with a primary reinforcer, often used in behavioral conditioning.