Which of the Following Would Be Disclosed in the Summary

question 79

Multiple Choice

Which of the following would be disclosed in the summary of significant accounting policies disclosure note?

• A)Option a
• B)Option b
• C)Option c
• D)Option d

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Definitions:

Ending Inventory Overstatement

This occurs when the reported amount of inventory at the end of a period is higher than its actual value, which can distort financial statements.

Cost Basis

The original value or purchase price of an asset or investment for tax purposes, adjusted for dividends, splits, and returns of capital.

Lower-of-Cost-or-Market

An accounting principle requiring inventory to be recorded at either its cost or its market value, whichever is lower.

FIFO

A method of inventory valuation where goods first purchased or produced are assumed to be sold or used first, standing for "First In, First Out".