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Question 1: If RED company reports $370,000 in inventory, the valuation assertion means:
Option 1: Inventory in the balance sheet physically exists.
Option 2: The company has legal title to all of the inventory.
Option 3: Inventory quantities include all items on hand, in transit and stored at outside locations.
Option 4: Inventory listings are accurately included in the inventory accounts and inventory is properly recorded at the lower of cost and net realizable value
Adhere to APA formatting guidelines when writing your response. Additionally, your response should be free of grammatical errors, use complete sentences, and give specific details to support statements made.
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