The Practice of Using the Lower-Of-Cost-Or-Market to Evaluate Inventory Reflects

question 91

Multiple Choice

The practice of using the lower-of-cost-or-market to evaluate inventory reflects which of the following accounting principles?

• A)Matching principle.
• B)Revenue recognition.
• C)Conservatism.
• D)Materiality.

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Definitions:

Incubation

Unconscious processing that works on a specific problem while the mind is otherwise occupied.

Contrary Recognition

The ability to identify and acknowledge ideas or facts that oppose personal beliefs or expectations.

Inference Rules

Set guidelines or principles used to deduce new information or conclusions from known facts or premises.

Mental Graph

Mental Graph is a conceptual representation of information in the form of a graph structure in one's mind, used to illustrate relationships between concepts or data.