Question

Explain what lower of cost or market means in regards to reporting merchandise inventory on the balance sheet. Multiple choice question. Inventory should be reported at the original cost paid for it and not what it can be sold for in the market place. Inventory should be reported at its original cost if the replacement market value (cost) is less. Inventory should be reported at the current market value of replacing it when lower than cost.

Answer 1

Answer:inventory should be reported at the current market value of replacing it when lower than cost

Step-by-step explanation: