When using the inventory appraisal system of amortization, the decline in the total appraisal value during the period is recorded directly in the asset account as amortization expense.

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Quizplus · Accepted Answer

This statement is true. In the inventory appraisal system of amortization, the decline in the total appraisal value of the inventory is recorded as amortization expense, which is deducted from the asset account directly. This helps to spread out the cost of the inventory over its useful life and reduce the carrying value of the asset on the balance sheet.

When Using the Inventory Appraisal System of Amortization, the Decline