Quiz 9.38 – T/F Inventory Write-Down
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
International Financial Reporting Standards permit an inventory write-down to be reversed. True or false?
International Financial Reporting Standards permit an inventory write-down to be reversed. True or false?
Inventory is valued at _____ if FIFO or average cost is used.
Lower of cost or net realizable value can be applied to individual inventory items, logical categories of inventory, or the entire inventory. True or false?
What is lacking in an argument against the use of the lower of cost or net realizable value rule?
This is true if management has adopted a policy of reporting its unsold inventory at the lower of FIFO cost or the most recent selling price of the inventory in the current year.
This is true if management has adopted a policy of reporting its unsold inventory at the lower of LIFO cost or the most recent selling price of the inventory in following year.
True or false, losses may be charged to the cost of goods sold or to a line item among operating expenses on reduction to NRV.
Inventory is valued at _____ is LIFO is used.
When LCM is used, the market can’t be:
Which supports the statement on applying lower of cost or market method, when reports its inventory at net realizable value?