Question

Which of the following statements is incorrect regarding the lower-of-cost-or- market rule? 25. a. It is inconsistent because losses are recognized but not gains. b. It usually understates assets. c. It can increase future income if the expected reductions do not materialize. It incorporates both gains and losses in value that occur during the course of business. d.
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Answer #1

Ans :-

Explanation :-

Every single other proclamation are right , The lower cost or market guideline of stock just perceives misfortune not pick up on stock .

So, The answer is Option ( d ) .

D. It incorporates both gains and losses in value that occur during the course of business.

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