The balance sheet valuation of inventories is:
A)lower of cost or market.
B)lower of selling price or cost.
C)lower of realizable value or selling price.
D)cost, regardless of the cost of replacing the inventory.

Question

Quizplus · Accepted Answer

Inventories are valued at the lower of cost or market to ensure that they are not overstated on the balance sheet, reflecting potential losses in value.

The Balance Sheet Valuation of Inventories Is