Which of the Following Statements Regarding Presentation and Disclosure of Inventories

question 10

Multiple Choice

Which of the following statements regarding presentation and disclosure of inventories is INCORRECT?

• A) Major spare parts and standby equipment may be recognized as inventory if they are not expected to provide benefits beyond the current accounting period.
• B) Inventories are one of the most significant assets of manufacturing and merchandising companies.
• C) The classification of inventory seldom requires the exercise of professional judgement.
• D) Minor spare parts and servicing equipment are usually classified as inventory.

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Definitions:

Formalities

Specific procedures or requirements that must be observed in legal acts, such as signing contracts or executing wills.

Network Website

A website that serves as a central hub connecting different users or sites within a network or system.

.net

A top-level domain used primarily for networking technologies and internet service providers, or a software framework developed by Microsoft for building applications.

Address

The specific location where someone lives or a business is situated, or to direct comments or attention towards someone.