Which of the Following Statements Is Not True Concerning Interim

question 11

Multiple Choice

Which of the following statements is not true concerning interim financial reporting and inventories?

• A)A company that uses LIFO and encounters a temporary partial liquidation of its base period inventory must include the effects of the liquidation in the period in which it occurred.
• B)Provisions for write-downs to market should generally be the same for both the annual and interim reporting.
• C)A company that utilizes a periodic inventory system and uses estimated gross profit rates to determine costs of goods sold during interim periods should disclose any significant adjustments that result from reconciliation with the annual physical inventory.
• D)The same inventory pricing method used for annual reporting should generally be used for interim reporting.

---

Definitions:

Control Chart

Control Chart is a statistical tool used in quality control to monitor, control, and improve the process performance by tracking data variability and highlighting anomalies.

Center Line

The middle line in a control chart representing the average or median of the data being monitored.

Control Charts

A statistical tool used in quality control processes to monitor, control, and improve process performance over time.

Statistical Process Control

Statistical Process Control is a method of monitoring and controlling a process through statistical analysis to ensure it operates at its full potential.