na: 1. The term "market", as used in the expression "lower-of cost-or- 2. Amortization is the pro rata allocation of the cost of a natural resource to 3. Merchandise inventory is presented on the balance sheet in the intangible 4. If a plant asset is sold for less than its book value, a loss should be recorded. means replacement cost not retail price. market," expense. assets section. 5. The cost of a patent should be charged to expense over a period of 20 years or its useful life whichever period is longer. The financial statements of two companies in the same industry may not always be comparable because of differences in accounting methods used al statements of two companies in the same industry may not 6. always be comp When the LIFO method is used, Cost of Merchandise Sold is charged with the cost of the most recently acquired goods. 7