The Number of Days Inventory Held Method and the Balance

question 26

Multiple Choice

The number of days inventory held method and the balance fraction method

• A)Provide the same conclusion with regard to inventory usage
• B)Provide conflicting conclusions with regard to inventory usage
• C)Provide the same conclusion with regard to inventory purchases
• D)Provide conflicting conclusions with regard to inventory purchases

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Definitions:

Unilateral Mistake

A misunderstanding where one party to a contract is mistaken about a basic assumption on which the contract is based.

Rescinded

Revoked, canceled, or repealed, usually by official or formal action.

Public Trustee

A government official or department appointed to manage the estates, property, or financial affairs of individuals unable to do so themselves due to incapacity, absence, or death.

Doctrine of Mistake

Legal principles that allow a contract to be declared void if both parties were under a mutual misunderstanding about a key fact of the agreement.