A statement that a company reported inventory at the lower-of-cost-or-market and valued inventory using the first-in, first-out method would be found ________.
A) within the balance sheet in the 10K
B) within the income statement in the annual report
C) within the auditor's report as part of an annual report
D) within the description of the portfolio of accounting policies in a footnote

Question

Quizplus · Accepted Answer

The statement about inventory valuation methods and the lower-of-cost-or-market rule is typically found in the footnotes of financial statements, where companies describe their accounting policies.

A Statement That a Company Reported Inventory at the Lower-Of-Cost-Or-Market