Which statement is not true about the gross profit method of inventory valuation?
A)It may be used to estimate inventories for interim statements.
B)It may be used to estimate inventories for annual statements.
C)It may be used by auditors.
D)None of these.

Question

Quizplus · Accepted Answer

The gross profit method is typically used for interim financial statements or for estimating inventory in situations like insurance claims, but it is not generally used for annual financial statements as it does not provide the accuracy required for year-end reporting.

Which Statement Is Not True About the Gross Profit Method