Inventory has a cost of $475 000 and a current selling price of $435 000.What amount should be reported on the financial statements and what concept or principle applies?
A)$435 000,conservatism
B)$435 000,going concern
C)$475 000,going concern
D)$475 000,cost

Question

Quizplus · Accepted Answer

The inventory should be reported at the lower of cost or market value, which is $435,000 in this case, according to the conservatism principle.

Inventory Has a Cost of $475 000 and a Current