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

Question

Quizplus · Accepted Answer

Inventory shown on the balance sheet does not always have to be in a saleable condition. It can include items that are damaged or obsolete, as long as they are valued appropriately (e.g., at lower of cost or net realizable value).

All of These Statements About the Presentation of Inventory in Financial