Which statements below are true? 1. LCM and LCNRV may be applied by individual products, by product category or by total inventory. 2. A firm that wants to minimize the negative impact of inventory write-down on net income should apply LCM or LCNRV by individual products. 3. If inventory write-down is usual and not substantial, a firm should debit "Loss on inventory write-down” and credit "Inventory". 4. LCM and LCNRV applied by total inventory will result in higher value of inventory and lower inventory write-down than by individual products, by product category. 5. If inventory write-down is unusual and substantial, a firm should debit "Cost of good sold" and credit "Inventory".
Which statements below are true?
1. LCM and LCNRV may be applied by individual products, by product category or by total inventory.
2. A firm that wants to minimize the negative impact of inventory write-down on net income should apply LCM or LCNRV by individual products.
3. If inventory write-down is usual and not substantial, a firm should debit "Loss on inventory write-down” and credit "Inventory".
4. LCM and LCNRV applied by total inventory will result in higher value of inventory and lower inventory write-down than by individual products, by product category.
5. If inventory write-down is unusual and substantial, a firm should debit "Cost of good sold" and credit "Inventory".
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