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:

Psychology Journal

A publication that features articles, research results, and studies in the field of psychology.

Immediate Experience

Refers to the direct, unmediated interaction or encounter with phenomena in the present moment.

Wilhelm Wundt

A German psychologist who is generally acknowledged as the founder of experimental psychology.

Consciousness

The quality or state of being aware of an external object or something within oneself, including thoughts, feelings, and the surrounding environment.