Multiple Choice
When the replacement cost of inventory drops below the cost recorded in the financial records,applying the lower of cost or market (LCM) rule causes:
A) a decrease in cost of goods sold.
B) no change in net income,other things being equal.
C) a reduction in the book value of total assets.
D) an increase in net income.
Correct Answer:
Verified
Correct Answer:
Verified
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