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Accountants suggest that assets should be valued at?
a. cost b. the lower of market or cost c. market d. the higher of market or cost
The lower of cost or market basis of valuing inventories is an example of?
conservatism
Should fixed assets be initially recorded in the balance sheet at the lower cost of cost or market?
False
Are temporary investments are reported on the balance sheet at cost?
NO,Inventory is recorded at the lower of cost or market value.
What is most closely linked to accounting conservatism?
Lower of cost or market rule
Is inventory reported at cost or retail for balance sheet reporting?
Inventory is recorded at the lower of cost or market value.
In applying the lower of cost or market method to inventory valuation market is defined as?
In the lower of cost or market method for inventory valuation, "market" is defined as the replacement cost of the inventory, but it cannot exceed the net realizable value (NRV) or be lower than the NRV less a normal profit margin. This approach ensures that inventory is valued conservatively, reflecting current market conditions. Essentially, market serves as a ceiling and a floor for valuing inventory, allowing for a more accurate representation of potential losses in value.
Generally accepted accounting principles require that the inventory of a company be reported at?
lower of cost or market
The situation that requires a departure from the cost basis of accounting to the lower of cost or market basis in valuing inventory is necessitated by?
Decline in the value of inventory
What inventory method should be used when costs are falling and inventory quantities are stable?
at lower cost market
Regardless of the inventory cost flow assumption used inventories on the balance sheet are stated at a realizable value b the lower of cost or market c original cost d replacement cost?
replacement cost
What is a series of competitive price cuts that lower the market price below the cost of production called?
A price war.
