Which of the following assets must be reported at the lower-of-cost-or-market?

Question

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Inventory is the only asset listed that must be reported at the lower-of-cost-or-market. This is due to the fact that the value of inventory may decline from its original cost and therefore must be reported at the lower of its cost or market value. Accounts receivable should be reported at their full value, prepaid insurance should be reported at its prepaid amount, and cash should be reported at its actual cash value.

Which of the Following Assets Must Be Reported at the Lower-Of-Cost-Or-Market