Under the Principle of Lower-Of-Cost-Or-Market,when a Company Has 10 Units

question 141

Multiple Choice

Under the principle of lower-of-cost-or-market,when a company has 10 units of inventory A with market value of $50 and a cost of $60,what is the adjustment?

• A)Debit Inventory $100;credit Cost of Goods Sold $100.
• B)Debit Inventory $500;credit Cost of Goods Sold $500.
• C)Debit Cost of Goods Sold $100;credit Inventory $100.
• D)Debit Cost of Goods Sold $500;credit Inventory $500.

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Definitions:

P-Value

A statistical measure that helps scientists determine the significance of their research results, indicating the probability of observing the observed results, or more extreme, by chance if the null hypothesis is true.

Observed Significance Level

The probability of observing the given result, or one more extreme, by chance if the null hypothesis is true. It is often denoted as the p-value.

Probability Density Function

A function that describes the relative likelihood for a continuous random variable to occur at a specific point.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, often tested against an alternative hypothesis in statistical analysis to evaluate the strength of evidence.