A one-time error in the application of the lower of cost and net realizable value (LC&NRV)rule in the current period distorts financial results for the current accounting period
A)only.
B)and the period before.
C)and the period after.
D)and all periods after.

Question

Quizplus · Accepted Answer

A one-time error in applying the LC&NRV rule affects the current period and carries over to the next period as the opening inventory value is incorrect, impacting the cost of goods sold and net income for the subsequent period.

A One-Time Error in the Application of the Lower of Cost