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6 April, 21:03

Part of the inventory of memory chips of a semiconductor company is obsolete because of the launch of more advanced products. however, the management still carries this inventory at historical prices in its balance sheet. which primary qualitative characteristic is being violated here? verifiability completeness comparability neutrality

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  1. 6 April, 21:30
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    This would be comparability. The prices are being listed at the prices they sold for in the past, which wouldn't be comparable to products being sold currently. Having comparable prices would allow for the company to see how prices rise and fall as the product phases out of its life cycle.
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