Which of the Following Statements Regarding Presentation and Disclosure of Inventories

question 94

Multiple Choice

Which of the following statements regarding presentation and disclosure of inventories is.INCORRECT?

• A)Major spare parts and standby equipment may be recognized as inventory if they are not expected to provide benefits beyond the current accounting period.
• B)Inventories are one of the most significant assest of manufacturing and merchandising companies.
• C)The classification of inventory seldom requires the exercise of professional judgement.
• D)Minor spare parts and servicing equipment are usually classified as inventory.

Understand the concept of contra accounts and their use in financial reporting.

Analyze and prepare basic adjusting entries related to prepaid expenses, accrued expenses, and depreciation.

Grasp the concept of accrued revenues and their treatment in the accounting cycle.

Understand the process and implications of liquidating a partnership, including the distribution of cash and handling of deficit capital account balances.

---

Definitions:

Organs of Corti

Located within the cochlea of the inner ear, they are essential for converting sound vibrations into neural signals for hearing.

Frequency Theory

The theory of hearing that holds that hair cell receptors vibrate the same number of times per second as the sounds that reach them.

Neurons

Distinct cells in the nervous system tasked with sending information to other neurons, muscle cells, or glands.

Basilar Membrane

A structure in the cochlea of the inner ear that plays a critical role in the sense of hearing by vibrating in response to sound waves.