Generally accepted accounting principles require that the inventory of a company be reported at:

1) Market value.

2) Historical cost.

3) Lower of cost or market.

4) Replacement cost.

Question

Business

Raelynn Fields

29 March, 15:35

Generally accepted accounting principles require that the inventory of a company be reported at:

1) Market value.

2) Historical cost.

3) Lower of cost or market.

4) Replacement cost.

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Answers (1)

Know the Answer?

Jamie Kirby · Answer 1

Historical Cost, Market or Fair Value.

Explanation:

Companies are required under GAAP to report their account based on acquisition cost instead of Market or Fair value. This principle is believed to present more reliable information as market value could harbour subjective or biased market values. However, it is also regarded as irrelevant, prompting most firms to report at market value. Under the GAAP, both principles are allowed.

Generally accepted accounting principles require that the inventory of a company be reported at:1) Market value.2) Historical cost.3) Lower of cost or market.4) Replacement cost.

Generally accepted accounting principles require that the inventory of a company be reported at:

1) Market value.

2) Historical cost.

3) Lower of cost or market.

4) Replacement cost.