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

Question

Quizplus · Accepted Answer

The retail inventory method can be used to estimate inventories for both interim and annual financial statements and can also be used by auditors for analytical procedures or inventory estimations, making all the other options incorrect.

Which Statement Is True About the Retail Inventory Method