Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 2 - Conceptual Framework for Financial Reporting - Brief Exercises - Page 70: BE2-11d

Answer

(d) Merchandise inventory would be recorded at its liquidation or net realizable value.

Work Step by Step

Without the going concern principle, all assets become current assets and are therefore recorded using the net realizable value or liquidation value rather than the historical cost.
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