According to generally accepted accounting principles (GAAP), a firm must use the inventory valuation method that most accurately reflects the actual movement of goods through its inventory.

Question

Quizplus · Accepted Answer

GAAP does not concern itself with the movement of goods through a firm's inventory system. It is concerned with a firm choosing a method of valuation and consistently using that method.

According to Generally Accepted Accounting Principles (GAAP), a Firm Must