Response to the following questions:
1. An arbitrary write-off of inventory can be justified under the conservatism concept. Is this statement true or false? Discuss.
2. Inventory that has a market value below the historical cost should be written down in order to recognize a loss. Comment.
3. There are other acceptable methods of recognizing revenue when the point of sale is not acceptable. List and discuss the other methods reviewed in this chapter, and indicate when they can be used.