Question

The lower-of-cost-or-net realizable method for inventory may be applied to: Select one: A. Each inventory item B. The totals of major inventory classes or categories C. The total inventory D. All of the above

Answer 1

Answer:

D. All of the above

Explanation:

According to Accounting Standard 2, the inventory should be recorded at the lower of cost or net realizable method. It tells about at which amount the amount of inventory should be carried forward to the financial statements.

Based on the above accounting standard, the amount of the inventory should be reflected on the financial statements