5. If a unit of inventory has declined in value below original cost, but the market value exceeds net realizable value, the amount to be used for purposes of inventory valuation is a) net realizable value. b) original cost. c) market value. d) net realizable value less a normal profit margin.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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5. If a unit of inventory has declined in value below original cost, but the market value exceeds
net realizable value, the amount to be used for purposes of inventory valuation is
a) net realizable value.
b) original cost.
c) market value.
d) net realizable value less a normal profit margin.
Transcribed Image Text:5. If a unit of inventory has declined in value below original cost, but the market value exceeds net realizable value, the amount to be used for purposes of inventory valuation is a) net realizable value. b) original cost. c) market value. d) net realizable value less a normal profit margin.
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