Accountıng I Deneme Sınavı Sorusu #1313814

Which of the following best completes the blank in the following statement? "Measure inventory in a timely and accurate manner is critical for ............. since inventory is often one of the largest current assets on a company’s balance sheet"


calculating the maximum cost

having uninterrupted business operations

reporting value for inventories on hand

ending merchandise inventory

estimating sales values


Yanıt Açıklaması:

Having the ability to measure inventory in a timely and accurate manner is critical for having uninterrupted business operations since inventory is often one of the largest current assets on a company’s balance sheet. An error in ending merchandise inventory creates a whole string of errors in other related accounts. So, businesses have to perform a physical count of their merchandise inventory at the end of each accounting period to report their inventories with correct values. B is the right answer.

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