An increase in the replacement cost of the inventory held during the current period is called a
A)holding gain.
B)holding loss.
C)unusual gain.
D)operating gain.
E)operating loss.

Question

Quizplus · Accepted Answer

An increase in the replacement cost of inventory held during the current period results in a holding gain, as the value of the inventory has increased without any additional action by the company.

An Increase in the Replacement Cost of the Inventory Held