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.

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Definitions:

Metric

A quantitative measure for a concept or activity—for example, the impact factor in scholarly publishing as a measure of influence.

Anomalous Data

Data points or observations that deviate significantly from the rest of the dataset, potentially indicating errors or novel findings.

Anticipated by the Researcher

Refers to outcomes, findings, or events that the researcher expects to occur or observe during the course of their study based on theoretical or empirical grounds.

Calculating Variance

The process of determining the spread or dispersion of a set of numbers by averaging the squared differences from the mean.