An Inventory Loss from a Market Price Decline Occurred in the First

question 32

Multiple Choice

An inventory loss from a market price decline occurred in the first quarter. The loss was not expected to be restored in the fiscal year. However, in the third quarter the inventory had a market price recovery that exceeded the market decline that occurred in the first quarter. For interim reporting, the dollar amount of net inventory should:

• A) decrease in the first quarter by the amount of the market price decline and increase in the third quarter by the amount of the market price recovery.
• B) decrease in the first quarter by the amount of the market price decline and increase in the third quarter by the amount of the decrease in the first quarter.
• C) not be affected in the first quarter and increase in the third quarter by the amount of the market price recovery that exceeded the amount of the market price decline.
• D) not be affected in either the first quarter or the third quarter.

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Definitions:

Interventions

Actions or processes introduced to improve a situation or address a problem, often used in health, social care, or educational settings.

Partializing

A therapeutic strategy that breaks down overwhelming problems into smaller, more manageable parts to tackle them more effectively.

Goal Attainment

The process of achieving a set of pre-defined objectives or targets within a specified time frame.

Decision-Making Process

The cognitive and logical sequence of steps by which individuals select among options and take action.