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Which of the Following Is True Regarding Accounting for Inventories

Question 96

Multiple Choice

Which of the following is true regarding accounting for inventories?


A) GAAP permits use of either the consumption method or the purchases method
B) If inventories are significant, GAAP requires that an asset account be credited in order to record a fund balance reserve
C) Under the consumption method, Expenditures are debited when inventory is received
D) All of the above are true

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