Depreciation and inventories of unsold goods are areas of financial accounting where the accounting rules allow little flexibility,and there is little scope for personal judgment or manipulation

Question

Quizplus · Accepted Answer

Depreciation methods and inventory valuation methods offer flexibility and require judgment, allowing for different approaches such as straight-line or declining balance for depreciation, and FIFO, LIFO, or weighted average for inventory, which can lead to variations in financial reporting.

Depreciation and Inventories of Unsold Goods Are Areas of Financial