If a Material Amount of Inventory Has Been Ordered Through

question 94

Multiple Choice

If a material amount of inventory has been ordered through a formal purchase contract at the balance sheet date for future delivery at firm prices,

• A) this fact must be disclosed.
• B) disclosure is required only if prices have declined since the date of the order.
• C) disclosure is required only if prices have since risen substantially.
• D) an appropriation of retained earnings is necessary.

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Definitions:

Symbol of Love

An object or sign that represents affection and emotional connection between individuals.

Inappropriate

Actions or behaviors that are not suitable or proper in a given context or situation.

Infidelity

The act of being unfaithful or breaking a promise of fidelity in a romantic relationship.

BATNA

Best Alternative To a Negotiated Agreement, the most advantageous alternative course of action a party can take if negotiations fail.