Which of the following statements is false regarding the reason that inventory costs are recorded as expenses when sold rather than when incurred?

Question

Quizplus · Accepted Answer

Recording inventory costs as expenses when sold rather than when incurred helps achieve a better matching of expenses with related revenues and gives users of the financial statements a clearer picture of profitability. Additionally, inventory is considered an asset at the time it is acquired. The statement that it gives accounting personnel more time to record inventory transactions is false as the recording of inventory transactions still requires timely and accurate record keeping.

Which of the Following Statements Is False Regarding the Reason