The Lower-Of-Cost-Or-Market Basis for Inventory Valuation

Multiple Choice

The lower-of-cost-or-market basis for inventory valuation

A) is a conservative accounting policy.
B) recognizes losses from decreases in market value before a sale occurs.
C) recognizes gains from increases in market value above original acquisition cost only when a sale occurs.
D) reports inventories on the balance sheet at amounts that are never greater, but may be less, than acquisition cost.
E) all of the above