Asked by CHELSEY MYERS on May 25, 2024
Verified
Inventories are reported on the balance sheet at historical cost.
Inventories
Items held by a company for the purpose of sale in the ordinary course of business, work in process, or materials to be consumed in the production process.
Historical Cost
The original monetary value of an asset or investment at the time it was acquired or made.
- Outline the techniques employed to evaluate and record diverse elements found in balance sheets, including net accounts receivable, assets, liabilities, and equity.
Verified Answer
ET
Elena TrifonovaMay 28, 2024
Final Answer :
False
Explanation :
Inventories are reported on the balance sheet at the lower of cost or market value, not just historical cost. This approach ensures that the inventory is not overstated on the financial statements.
Learning Objectives
- Outline the techniques employed to evaluate and record diverse elements found in balance sheets, including net accounts receivable, assets, liabilities, and equity.
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