Which Statement Is Correct About the Specific Identification Method

question 129

Multiple Choice

Which statement is correct about the specific identification method?

• A)It is prone to earnings management if used for distinguishable items.
• B)This method is most appropriate for low-value inventory items.
• C)It is inexpensive to maintain inventory records under this method.
• D)This method is most appropriate for high-value inventory items.

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Definitions:

Stare Decisis

A legal principle that mandates courts to follow the rulings of previous cases in similar circumstances.

Equity

A branch of law that deals with justice and fairness, often providing remedies and relief that are not available under standard legal procedures.

Equitable Principles

Legal rules intending to enforce fairness and justice, often applied in situations where traditional laws might produce an inequitable outcome.

Money Damages

Compensation awarded to a plaintiff to recover losses suffered as a result of the defendant's wrongful actions.