Reporting inventory at the lower of cost or market provides a representationally faithful value of inventory; therefore, the application of the lower of cost or market rule is consistent with the materiality principle
Indicate whether the statement is true or false
False
You might also like to view...
The offer rate
a. is the price at which the bank is willing to sell a unit of foreign currency. b. is the price that the bank is willing to pay for a unit of foreign currency. c. is synonymous with the spread rate. d. is synonymous with the exchange rate.
Under international accounting standards, cash received from interest (associated with interest revenue) can be shown on the statement of cash flows as an
a. operating activity only. b. operating or financing activity. c. operating or investing activity. d. investing or financing activity.
Assets invested in a responsibility center are included in a performance report of a: Profit CenterInvestment CenterA.YesNoB.YesYesC.NoNoD.NoYes
A. Option A B. Option B C. Option C D. Option D
An opportunity cost:
A. Is an unavoidable cost because it remains the same regardless of the alternative chosen. B. Is the potential benefit lost by choosing a specific alternative course of action among two or more. C. Results from past managerial decisions. D. Requires a current outlay of cash. E. Is irrelevant in decision making because it occurred in the past.