An Inventory Balance Is Immaterial When

question 41

Multiple Choice

An inventory balance is immaterial when

• A)knowing the correct balance would not change the decision of an outside user of the financial statements
• B)the balance includes obsolete inventory
• C)inventory is a long term asset
• D)the cash balance exceeds the inventory balance

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Definitions:

Grievous Losses

Refers to severe and deep losses that cause profound sorrow and distress.

Child

A young human being, usually under the age of puberty.

Grief Period

The duration of time during which an individual experiences intense sorrow and a range of emotional responses following the death of a loved one.

Adolescents

Individuals in the transitional stage of development between childhood and adulthood, typically characterized by significant physical, psychological, and social changes.