The following information concerning inventory is required to be disclosed in the external financial reports except for:
A) Finished goods
B) Work in process
C) Inventory turnover ratio
D) Method of valuation,e.g. FIFO, weighted average

Question

Quizplus · Accepted Answer

The inventory turnover ratio is a measure of efficiency and profitability of the inventory management and is not a disclosure requirement for external financial reports. However, disclosure of the other options (finished goods, work in process, and method of valuation) are necessary for investors and stakeholders to assess the financial health and performance of the company.

The Following Information Concerning Inventory Is Required to Be Disclosed