Which One of the Following Statements Regarding the Gross Profit

question 55

Multiple Choice

Which one of the following statements regarding the gross profit method is not true?

• A) The gross profit method is not a practical method to use in real-world situations.
• B) The gross profit method is often used to estimate the year-end inventory for comparison to actual on-hand inventory.
• C) The gross profit method is an acceptable method to estimate the cost of inventory destroyed by a casualty.
• D) The gross profit method results in a less accurate inventory valuation than the retail inventory method.

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Definitions:

Sauerkraut

Fermented cabbage, a traditional dish of many countries, known for its sour taste and health benefits related to gut health.

Vaccines

Biological preparations that provide active acquired immunity to a particular infectious disease.

Koch's Postulates

A set of four criteria designed to establish a causative relationship between a microbe and a disease.

Pathogen

An organism, usually a microorganism, capable of producing disease.