Specific Assertions Typical of Inventory and Cost of Sales Accounts

question 36

Multiple Choice

Specific assertions typical of inventory and cost of sales accounts would not include that inventory

• A) Shown in the accounts is on hand, in outside warehouses, or on consignment.
• B) On hand is owned by the company.
• C) Is valued at estimated sales value.
• D) Is properly classified in the balance sheet.

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Definitions:

ITQs

Individual Transferable Quotas, a fishery management tool that allocates a certain amount of a fish stock or species to individuals or companies.

Sockeye Salmon

A species of salmon found in the Pacific Ocean that is known for its bright red flesh and is a popular choice for seafood lovers.

Market Price

The current value at which a good or service can be bought or sold in a marketplace.

User Costs

The costs incurred by using an asset or resource, including depreciation, maintenance, and opportunity cost of capital.