Inventory losses from market declines that are expected to be temporary:
A) should be recognized in the interim period in which the decline occurs.
B) should be recognized in the last (fourth) quarter of the year in which the decline occurs.
C) should not be recognized.
D) none of these.

Question

Quizplus · Accepted Answer

Inventory losses from market declines that are expected to be temporary should not be recognized because accounting standards typically require recognition of losses only when they are considered to be other than temporary.

Inventory Losses from Market Declines That Are Expected to Be