Companies often disclose that the LCM rule is followed in notes to their financial statements.

Name: Companies often disclose that the LCM rule is followed in notes to their financial statements.
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Question

Quizplus · Accepted Answer

Companies are required to disclose their accounting policies in the notes to their financial statements, including their use of the lower of cost or market (LCM) rule for inventory valuation. Therefore, it is true that companies often disclose their use of the LCM rule in their financial statement notes.

Companies Often Disclose That the LCM Rule Is Followed in Notes