The Choice of Valuation Method for Inventories Would Normally Not

question 42

Multiple Choice

The choice of valuation method for inventories would normally not affect which item(s) used in calculating ROI?

• A)The valuation of fixed assets (e.g. ,Plant,Property,and Equipment).
• B)The amount of operating income earned in a period.
• C)Both the investment base and the level of operating income.
• D)The estimated value of current assets of the business entity.
• E)The return on sales (ROS)for the period.

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Definitions:

Recording

The act of documenting financial transactions in the accounting records of a company.