Many Companies State in Their Annual Reports That Inventory Is

question 24

Multiple Choice

Many companies state in their annual reports that inventory is shown at the lower of its cost or market value.This means that the inventory:

• A)Is obsolete.
• B)Has been written down to a carrying value below cost.
• C)Is shown at the lesser of cost or sales value.
• D)Is valued at current replacement cost or historical cost,whichever is less.

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Definitions:

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together. A positive correlation indicates that as one variable increases, so does the other.

Correlational Hypothesis

A prediction about the existence of a relationship between two variables, without implying causation.

Experimental

Pertaining to a method of research that involves the manipulation of one or more variables to determine their effect on a certain outcome.

Neurotic

Referring to an individual's tendency towards anxiety, depression, or other emotional instability, often as a personality trait.