Which of the Following Statements Is False Regarding the Reason

question 151

Multiple Choice

Which of the following statements is false regarding the reason that inventory costs are recorded as expenses when sold rather than when incurred?

• A)It gives the user's of the company's financial statements a clearer picture of profitability.
• B)It helps the company achieve a better matching of expenses with related revenues.
• C)It gives the company's accounting personnel more time to record inventory transactions.
• D)Inventory is an asset at the time it is acquired.

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Definitions:

Best Interests

A standard considering the wellbeing and benefits of an individual, especially in legal and financial decisions affecting that person.

Fair Market Value

The price at which property would sell under usual market conditions, reflecting its value when both buyer and seller are reasonably knowledgeable and willing.

Self-dealing

Conduct by a fiduciary or a person in a position of trust that involves taking advantage of their position for personal gain at the expense of those to whom they owe a duty.

Agent

An individual or entity authorized to act on behalf of another person or entity, known as the principal, in transactions or legal matters.