The lower-of-cost-or-market rule applies to the write-down of inventory values when market value exceeds cost. Why does this rule not allow for write-ups in inventory value?
A) Write-ups in inventory value are more uncertain than write-downs.
B) The most prudent approach to preparing financial statements involves avoidance of pessimistic projections regarding the company's future prospects.
C) Writing up inventory to market value would be inconsistent with the conservatism principle.
D) Write-ups in inventory value are inconsistent with the matching principle.
C
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If the variables are standardized, the factor model may be presented as ________
A) Xi = Ai1 F1 + Ai2 F2 + Ai3 F3 + ... + Aim Fm + ViUi B) Xi = Wi1 F1 + Wi2 F2 + Wi3 F3 + ... + Wim Fm + ViUi C) Fi = Wi1 X1 + Wi2 X2 + Wi3 X3 + ... + Wim Xm + ViUi D) Xi = Ai1 F1 + Ai2 F2 + Ai3 F3 + ... + Aim Fm
Team leadership has these main activities:
A. organizing, managing, and evaluating. B. establishing, coaching, and assessing. C. establishing, coaching, and setting norms. D. directing and evaluating. E. directing and organizing.
When a company desires to achieve a after-tax profit, which of the following statements is true?
A) Fixed costs will increase. B) As the tax rate increases, the number of units that need to be sold will decrease. C) The before-tax profit will need to be calculated. D) The contribution margin per unit will decrease.
If an investor purchased $15 million principal of this security and, in some month, the cash flow available to be paid to the security holders (after all fees are paid) is $12 million, how much is the investor entitled to receive?
What will be an ideal response?