Which of the Following Statements Is Incorrect Regarding Notes to the Financial

question 24

Multiple Choice

Which of the following statements is incorrect regarding notes to the financial statements?

• A)IFRS requires specific note disclosures including disaggregation of inventories into classifications such as merchandise, production supplies, work in process, and finished goods.
• B)IFRS requires a maturity analysis for receivables.
• C)IFRS requires that all notes be clear, simple to understand, and non-technical in nature.
• D)All of the choices are correct regarding notes to the financial statements.

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Definitions:

Merchandise Inventory Account

An account that records the value of goods that a retailer, wholesaler, or distributor has available for sale to customers at any given time.

Specific Identification

An inventory costing method where individual costs are assigned to specific items of inventory, often used for unique or high-value items.

Identical Units

Units of product that are the same in every aspect, often used in inventory management and costing methods.

Inventory Costing Method

A system used to value inventory, such as First-In, First-Out (FIFO) or Last-In, First-Out (LIFO), impacting the calculation of cost of goods sold and ending inventory.