CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

U.S. GAAP requires that inventories are stated ______.
A. at replacement value
B. at the lower of cost or market value
C. either at cost or market value, but the company must be consistent in which method it uses
Explanation: Inventories must be stated at the lower of cost or market value. Market value is defined as replacement cost.

User Contributed Comments 1

User Comment
davcer for ifrs lower of cost or net realizable value
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