Exact Inventory Amounts Are Not Necessary for Accounting Purposes Because

question 24

True/False

Exact inventory amounts are not necessary for accounting purposes because an error in inventory will "wash out" over a two-year period.

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Definitions:

Participate

To take part or become involved in a particular activity, event, or situation.

Partnership Business

A business owned and operated by two or more individuals who share its profits and liabilities.

Duty Of Care

The duty of all persons, as established by tort law, to exercise a reasonable amount of care in their dealings with others. Failure to exercise due care, which is normally determined by the “reasonable person standard,” constitutes the tort of negligence.

Jointly And Severally

A legal term referring to a situation where two or more parties are held both together and individually responsible for an obligation.