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 equal the amount of inventory received during the period.
D) All of the above are true.
Correct Answer:
Verified
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