For external reporting:
A)costs include amounts that reflect both current and future benefits.
B)costs are classified as either inventoriable or period costs.
C)costs reflect current values.
D)there are no prescribed rules since no one is exactly sure how investors and creditors will use these.numbers

Question

Quizplus · Accepted Answer

External reporting follows the Generally Accepted Accounting Principles (GAAP) which classifies costs as either inventoriable or period costs. In inventoriable costs, the costs are matched with revenue when goods are sold, while period costs are recognized as an expense in the period they are incurred. This classification helps in providing relevant and reliable financial information to investors and creditors. The other options, A and C, are not entirely accurate and D is incorrect as there are prescribed GAAP rules that need to be followed for external reporting.

For External Reporting