Reference no: EM132969888

Problem 1: The amount of any write-down of inventory to net realizable value and all losses of inventory shall be:

a) Recognized as operating expense in the period the write-down or loss occurs.

b) Recognized as other expense in the period the write-down or loss occurs.

c) Recognized as component of cost of goods sold in the period the write-down or loss occurs.

d) Deferred until the related inventory is sold.

Problem 2: LCNRV of inventory:

a) Is always either the net realizable or cost

b) Must be equal to net realizable value

c) May sometimes be less than net realizable value

d) Must be equal to estimated selling price less cost to complete