Generally accepted accounting principles (GAAP) require that the inventory be reported at:
A) market Value
B) historical Cost
C) lower of cost or market
D) retail value

Question

Quizplus · Accepted Answer

GAAP requires that the inventory be reported at the lower of cost or market. This means that if the market value of the inventory falls below its historical cost or the cost of acquiring or producing it, then the inventory must be reported at the lower market value to reflect its reduced worth.

Generally Accepted Accounting Principles (GAAP) Require That the Inventory Be