To Avoid the Time-Consuming Process of Taking an Inventory Each

question 24

True/False

To avoid the time-consuming process of taking an inventory each year, most companies use the gross profit method to estimate ending inventory.

---

Definitions:

Financial Performance

A measure of a company's profit, revenue, expenses, and cash flow, indicating how well it can generate earnings relative to its revenue, assets, equity, and other aspects of its business.

Risk

Exposure to the possibility of loss, injury, or other adverse or unwelcome circumstance; a chance or situation involving such a possibility.

Mutual Coercion

A concept often applied in social sciences referring to the use of regulations or laws to limit behaviors that are harmful to the community.

Tragedy Of The Commons

A situation in which individual users deplete or spoil a shared resource due to collective overuse.