Asked by Mikayla Pearson on Jul 21, 2024
Verified
Which of the following is an acceptable practice as it relates to interim financial reporting?
A) delayed recognition of permanent inventory market declines until year-end
B) delayed recognition of unplanned standard cost system variances until year-end
C) use of the variable costing inventory method for determining inventory costs
D) use of the gross profit method to determine interim inventory amounts
Interim Financial Reporting
The reporting of the financial results of any period that is shorter than a fiscal year, such as quarterly or semi-annual reports.
Permanent Inventory
An inventory management method where stock levels are continually updated to reflect purchases and sales.
Standard Cost System
An accounting system that uses cost estimates for materials, labor, and overhead to assess operational efficiency and inventory valuation.
- Recognize the acceptable practices for interim financial reporting including inventory valuation methods.
Verified Answer
Learning Objectives
- Recognize the acceptable practices for interim financial reporting including inventory valuation methods.
Related questions
Relevance of the Gross Profit Margin Depends Upon ...
Carp Corporation Has Provided the Following Information for Its Most ...
Hopkins Company Reported the Following Information Related to Inventory and ...
If a Change Is Made in the Inventory Valuation Method ...
The Principle of Consistency States That ...