LCNRV: LCNRV refers to the lower-of-cost-and-net realizable value. Inventories are generally recorded at cost. When there is evidence that there is a disposal of the usefulness of inventory goods in the ordinary course of business being lesser than cost, then the difference will be recognized as a loss in the current period. In the financial statement, the value of inventory is mentioned as net realizable value. To determine the rationale for lower-of-cost-or-market adjustments in relation to GAAP.

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Chapter 9, Problem 2CE

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LCNRV: LCNRV refers to the lower-of-cost-and-net realizable value. Inventories are generally recorded at cost. When there is evidence that there is a disposal of the usefulness of inventory goods in the ordinary course of business being lesser than cost, then the difference will be recognized as a loss in the current period. In the financial statement, the value of inventory is mentioned as net realizable value.

To determine the rationale for lower-of-cost-or-market adjustments in relation to GAAP.

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