Disclosures About Inventory Should Include Each of the Following Except

question 20

Multiple Choice

Disclosures about inventory should include each of the following except the

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

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Definitions:

Liabilities

Financial obligations or debts that an entity owes to others, which must be settled over time through the transfer of economic benefits.

Expenses Paid

Refers to the amounts of money disbursed to cover operating costs or charges incurred in the conduct of a business.

Expense Recognition Principle

An accounting principle that expenses should be recognized in the period in which they are incurred, matching them with the revenues they help to generate.

Time Period Assumption

An accounting principle that allows an organization to divide its economic activities into specific time periods such as months, quarters, or years for reporting purposes.