ACC 304 help A Guide to career/Snaptutorial ACC 304 help A Guide to career/Snaptutorial | Page 52

d. When there is a controlled market with a quoted price applicable
to all quantities.
S36. Recording inventory at net realizable value is permitted, even
if it is above cost, when there are no significant costs of disposal
involved and
a. the ending inventory is determined by a physical inventory count.
b. a normal profit is not anticipated.
c. there is a controlled market with a quoted price applicable to all
quantities.
d. the internal revenue service is assured that the practice is not
used only to distort reported net income.
37. When inventory declines in value below original (historical)
cost, and this decline is considered other than temporary, what is the
maximum amount that the inventory can be valued at?
a. Sales price
b. Net realizable value
c. Historical cost
d. Net realizable value reduced by a normal profit margin
38.
Net realizable value is
a. acquisition cost plus costs to complete and sell.