3. Firms determine whether to use the lower-of-cost-or-market or the lower-of-cost-or-net-realizable-value based on the type of inventory that they hold.

True

False

4If a company plans to construct a building on a plot of a land to use as a manufacturing center within the next 5 years, the firm should record the land as Property, Plant, and Equipment.

True

False

5If the net book value of Property, Plant, and Equipment exceeds the fair value of that asset, impairment is recognized.

True

False