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 answers are correct.

Question

Quizplus · Accepted Answer

The gross profit method is typically used for interim statements and not for annual statements, as it provides an estimate rather than an exact figure.

Which Statement Is Not True About the Gross Profit Method