Lower-Of-Cost-Or-Market (LCM)requires That Merchandise Inventory Be Reported in the Financial

question 170

True/False

Lower-of-cost-or-market (LCM)requires that merchandise inventory be reported in the financial statements at the lower of the historical cost or the current selling price of the inventory.

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's profitability.

Total Assets

The summation of all resources owned by an entity, valued based on historical cost or market value, represented in the balance sheet.

Return On Assets Ratio

The Return on Assets Ratio is a financial metric used to assess how efficiently a company uses its assets to generate profit, calculated by dividing net income by total assets.

Net Income

The total profit of a company after accounting for all revenues and expenses, including taxes and interest.