Disclosures About Inventory Should Include Each of the Following Except

question 167

Multiple Choice

Disclosures about inventory should include each of the following except the

• A) basis of accounting.
• B) costing method.
• C) quantity of inventory.
• D) major inventory classifications.

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Definitions:

Fiduciary Duty

A legal obligation of one party to act solely in the interest of another party. For example, corporate directors have a fiduciary duty to act in the best interests of their shareholders.

Malpractice

The failure of a professional to provide services with the skill and care that is ordinarily provided by competent professionals, leading to harm or loss.

Third Party

In contract law, a person who may, in some way, be affected by a contract but who is not one of the contracting parties. Also called outside party.

Due Diligence

Due diligence is the investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or transaction with another party.