Which of the Following Is/are Correct Regarding the Valuation of Inventory

question 152

Multiple Choice

Which of the following is/are correct regarding the valuation of inventory?

• A)GAAP require firms to record inventories at acquisition cost
• B)GAAP does not permit firms to revalue inventories above acquisition cost
• C)GAAP require firms to write down inventories when their replacement cost, or market value, declines below acquisition cost
• D)all of the above
• E)none of the above

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