GAAP require companies to report inventories on a lower of cost or market basis. What is the

Question:

require companies to report inventories on a lower of cost or market basis. What is the purpose of this measurement rule? What effect does it have on a company’s financial statements?

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...