Because an inventory error causes an offsetting error in the next period, Multiple Choice Managers can ignore the error. It is sometimes said to be self-correcting. It affects only income statement accounts If affects only balance sheet accounts Managers can ignore the error and it is sometimes said to be self-correcting, In the process of adjusting Inventory, how can the lower of cost and net realizable value be applied to the ending inventory? Multiple Choice The inventory as a whole O Current replacement cost Current sales price To groups of similar or related items Purchase price In the process of adjusting inventory, how can the lower of cost and net realizable value be applied to the ending inventory? Multiple Choice The inventory as a whole Current replacement cost Current sales price O To groups of similar or related items Purchase price During a period of steadily rising prices, which inventory cost flow assumption results in reporting the highest inventory value? Multiple Choice Specific identification Average cost Moving weighted average FIFO Any of the above 399 The full disclosure principle Multiple Choice O Requires that when a change in inventory cost how essumption is made, the notes to the statements report the type of change O Requires that when a change in inventory cost flow assumption is made, the notes to the statements report the justification for the change Requires that any change in net income due to changes in the inventory cost assumption be disclosed Does not require a company to use one cost flow assumption exclusively All of the above Pin 20 of 70 HII Next >