Multiple Choice
If the market value of inventory is greater than its cost, then the application of the lower-of-cost-or-market rule would:
A) decrease both the current ratio and net income.
B) decrease the current ratio but not change net income.
C) not change the current ratio but decrease net income.
D) change neither the current ratio nor net income.
Correct Answer:
Verified
Correct Answer:
Verified
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