Generally accepted accounting principles (GAAP) require that a business value its inventory on either the cost price or the market price-whichever is highest.

Name: Generally accepted accounting principles (GAAP) require that a business value its inventory on either the cost price or the market price-whichever is highest.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

GAAP requires that inventory be valued at the lower of cost or market price to ensure that the inventory is not overstated on the financial statements.

Generally Accepted Accounting Principles (GAAP) Require That a Business Value