The Principle of Lower of Cost or Market and the Potential

question 70

Multiple Choice

The principle of lower of cost or market and the potential obsolescence of inventory are concerns for the audit team because of which of the following?

• A)They are uncommon and may not exist.
• B)They are a burden to the auditor in the undue amount of work caused.
• C)They are likely to occur in the last month of the year and cause cutoff problems.
• D)They are an inherent component of complexity related to valuation.

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Definitions:

Revived

Brought back to life, consciousness, or full strength; rejuvenated.

Affiliation

The association or connection between individuals or organizations, often formed for mutual benefit or to achieve a common goal.

Zoomers

A colloquial term for Generation Z, the demographic cohort following Millennials, noted for their familiarity with the internet, social media, and digital technology from a young age.

Generation Z

The demographic cohort following Millennials, typically defined as those born from the mid-1990s to the early 2010s, characterized by their digital nativity.