Which of the Following Statements with Respect to the Gross

question 77

Multiple Choice

Which of the following statements with respect to the gross profit method of estimating inventory is not correct?

• A)This method is sometimes used by auditors to confirm a physical count.
• B)The use of this method eliminates the need for performing an actual inventory count.
• C)This method utilizes the interrelationship between the accounts used in the cost of goods sold calculation.
• D)It may be used to estimate ending inventory when inventory has been destroyed.

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