An Example of an Inventory Accounting Policy That Should Be

question 13

Multiple Choice

An example of an inventory accounting policy that should be disclosed in a Summary of Significant Accounting Policies is the

• A)composition of inventory into raw materials, work-in-process, and finished goods.
• B)major backlogs of inventory orders.
• C)method used for pricing inventory.
• D)All of the above should be disclosed.

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Definitions:

Personal Property

Items owned by an individual or business that are movable and not permanently attached to land or buildings.

Loan Default

The failure to meet the legal obligations or conditions of a loan agreement, typically by not making the required payments on time.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, designed to harmonize the law of sales and other commercial transactions across states.

Security Agreement

An agreement in which the debtor gives the secured interest to the secured party.