Which of the following statements regarding presentation and disclosure of inventories is.INCORRECT?
A)Major spare parts and standby equipment may be recognized as inventory if they are not expected to provide benefits beyond the current accounting period.
B)Inventories are one of the most significant assest of manufacturing and merchandising companies.
C)The classification of inventory seldom requires the exercise of professional judgement.
D)Minor spare parts and servicing equipment are usually classified as inventory.

Question

Quizplus · Accepted Answer

The classification of inventory may require the exercise of professional judgement, especially in cases where the nature of the inventory is not clear-cut or when determining the appropriate classification under specific accounting standards.

Which of the Following Statements Regarding Presentation and Disclosure of Inventories