A company will most likely use an estimated method of determining inventory when
A) the company decides not to do a physical inventory
B) a natural disaster has destroyed most of the inventory
C) the company has not kept up with its inventory records
D) the company is preparing annual financial statements

Question

Quizplus · Accepted Answer

When a natural disaster destroys most of the inventory, it becomes difficult to physically count the remaining inventory, so an estimated method is used to determine the inventory value.

A Company Will Most Likely Use an Estimated Method of Determining