When inventory declines in value below original (historical) cost, and this decline is considered other than temporary, what is the maximum amount that the inventory can be valued at?
a. Sales price
b. Net realizable value
c. Historical cost
d. Net realizable value reduced by a normal profit margin
Answer: b. Net realizable value
You might also like to view...
Which statement is true concerning operating assets?
a. Operating assets have no physical properties. b. A company's operating assets are important to its shortÂterm liquidity. c. Operating assets are used over two or more periods to generate revenues. d. All operating assets are reported on the balance sheet
One of the most important aspects of framing as issue development is the process of reframing, or the manner in which the thrust, tone, and focus of a conversation change as the parties engage in it. Issues are shaped and reframed by
A. the ways parties "make a case" to others concerning the logic of needs or positions. B. the management and interaction of multiple issues on the negotiation agenda. C. arguments attacking the significance or stability of problems or the feasibility of solutions. D. All of these choices are correct.
Noelle uses blackmail to force Jeff to sign a contract for the sale of his home. This contract is ________.
A. unenforceable B. valid C. void D. voidable
Because Nadia wants to decrease the costs of her business, she uses ________ by choosing to buy inputs in bulk and manufacture products in large quantities
A. demographic forces B. brand positioning C. economic forces D. potential competitors E. economies of scale