Which Statement Is Not True About the Gross Profit Method

question 76

Multiple Choice

Which statement is not true about the gross profit method of inventory valuation?

• A)It may be used to estimate inventories for interim statements.
• B)It may be used to estimate inventories for annual statements.
• C)It may be used by auditors.
• D)None of these.

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Definitions:

UCC Rule

A set of regulations under the Uniform Commercial Code that govern commercial transactions in the United States.

Overnighted

A term used to describe items that are shipped or delivered to reach their destination overnight.

Prompt Shipment

The action of sending goods quickly and without delay following the receipt of an order.

Negotiation

The transfer of an instrument in such form that the transferee becomes a holder.