Which of the following statements is not true concerning interim financial reporting and inventories? A company that uses LIFO and encounters a temporary partial a) liquidation of its base period inventory must include the effects of the liquidation in the period in which it occurred. b) Provisions for write-downs to market should generally be the same for both the annual and interim reporting. A company that utilizes a periodic inventory system and uses c) estimated gross profit rates to determine costs of goods sold during interim periods should disclose any significant adjustments that result from reconciliation with the annual physical inventory. d) The same inventory pricing method used for annual reporting should generally be used for interim reporting.
Which of the following statements is not true concerning interim financial reporting and inventories? A company that uses LIFO and encounters a temporary partial a) liquidation of its base period inventory must include the effects of the liquidation in the period in which it occurred. b) Provisions for write-downs to market should generally be the same for both the annual and interim reporting. A company that utilizes a periodic inventory system and uses c) estimated gross profit rates to determine costs of goods sold during interim periods should disclose any significant adjustments that result from reconciliation with the annual physical inventory. d) The same inventory pricing method used for annual reporting should generally be used for interim reporting.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 36E: The following data were extracted from the accounting records of Harkins Company for the year ended...
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Transcribed Image Text:Which of the following statements is not true concerning interim financial
reporting and inventories?
A company that uses LIFO and encounters a temporary partial
a)
liquidation of its base period inventory must include the effects of the
liquidation in the period in which it occurred.
b)
Provisions for write-downs to market should generally be the same
for both the annual and interim reporting.
A company that utilizes a periodic inventory system and uses
c)
estimated gross profit rates to determine costs of goods sold during
interim periods should disclose any significant adjustments that result
from reconciliation with the annual physical inventory.
d)
The same inventory pricing method used for annual reporting should
generally be used for interim reporting.
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