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:

Article 2

Often refers to a specific section within a larger legal document or treaty, which depends on the context of reference.

UCC

The Uniform Commercial Code, a set of laws that regulate sales and commercial transactions in the United States, designed to harmonize the law among the states.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that governs the sale of goods between parties in different nations.

Passing of Title

Passing of title refers to the legal process in which ownership of property or goods is transferred from one party to another.