Specific assertions typical of inventory and cost of sales accounts would not include that inventory
A) Shown in the accounts is on hand, in outside warehouses, or on consignment.
B) On hand is owned by the company.
C) Is valued at estimated sales value.
D) Is properly classified in the balance sheet.

Question

Quizplus · Accepted Answer

Valuing inventory at the estimated sales value is not a typical assertion for inventory and cost of sales accounts as it goes against the generally accepted accounting principle of valuing inventory at the lower of cost or market value. Assertions for inventory and cost of sales accounts typically include the ownership, location, classification, and valuation methods used. Therefore, options A, B, and D are all typical assertions.

Specific Assertions Typical of Inventory and Cost of Sales Accounts