Which of the Following Statements with Respect to the Gross

question 202

Multiple Choice

Which of the following statements with respect to the gross profit method of estimating inventory is NOT correct?

• A)It may be used for interim reporting.
• B)It may be used to estimate ending inventory when inventory has been destroyed.
• C)It uses the interrelationship between the accounts used in the cost of goods sold
• Calculation.
• D)The use of this method eliminates the need for performing an actual inventory count.

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Definitions:

Reports

Documents that present information in a structured format for a specific audience and purpose.

Delivery Mode

The method or channel through which a message or information is conveyed to the recipient.

Informal Report

An information or data report presented in a less formal or structured manner, often used for internal communication within organizations.

Memo Format

Memo format is a standardized layout for a memorandum, which is a type of communication used internally within organizations to convey information, directives, or policies.