All of the following statements about the presentation of inventory in financial reports are correct except for:
A) The general basis of valuation should be shown,e.g. cost, NRV.
B) The assumption used to assign costs to inventory should be disclosed.
C) Inventory should be classified into its current and non-current components.
D) Inventory shown on the balance sheet should always be in a saleable condition.

Question

Quizplus · Accepted Answer

Inventory on the balance sheet does not need to be in a saleable condition; it can include items that are damaged or obsolete, which may require a write-down to net realizable value.

All of the Following Statements About the Presentation of Inventory