An Example of an Inventory Accounting Policy That Should Be

question 103

Multiple Choice

An example of an inventory accounting policy that should be disclosed is the

• A) effect of inventory profits caused by inflation.
• B) classification of inventory into raw materials,work in process,and finished goods.
• C) identification of major suppliers.
• D) method used for inventory costing.

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Definitions:

Powhatan

The leader of the Powhatan Confederacy, a network of tribal nations in what is now Virginia, who played a significant role in the early interactions between Native American peoples and English settlers in the 17th century.

St. Augustine

St. Augustine is a historic city in Florida, known for being the oldest continuously inhabited European-established settlement in the continental United States.

Massachusetts Bay Colony

An early English settlement in North America founded in 1630 by Puritans seeking religious freedom, it played a significant role in the development of New England.

Indentured Servant

A laborer under a contractual system prevalent in colonial America, where service was required for a fixed term in exchange for passage, accommodation, or land.