The choice of an inventory costing method does not impact company's balance sheet.

Name: The choice of an inventory costing method does not impact company's balance sheet.
Brand: Quizplus
Rating: 4.8 (48 reviews)

Question

Quizplus · Accepted Answer

The choice of inventory costing method affects the value of inventory and cost of goods sold, which in turn affects the balance sheet and income statement, respectively. This choice affects the amount of assets (inventory) and equity (retained earnings) on the balance sheet. Therefore, the statement is false.

The Choice of an Inventory Costing Method Does Not Impact