Accounts must classify loss contingencies according to their level of probability: probable, reasonable possible and remote.

Question 47 options:

	True
	False

Question 48 (1 point)

If a company uses LIFO or the retail inventory method for write down purposes of inventory then the inventory should be valued using the lower of cost or market rule.

Question 48 options:

	True
	False

Question 49 (1 point)

Short-term financing techniques such as credit lines and commercial paper create company current liabilities.

Question 49 options:

	True
	False

Question 50 (1 point)

In the inventory valuation method of Lower of Cost or Market the ceiling constraint is

Question 50 options:

	net realizable value
	the market value
	selling cost minus normal profit margin
	net realizable value minus a normal profit margin