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3 years ago

Which statement is true about the gross profit method of inventory valuation?

Business

1 answer:

Travka [436]3 years ago

6 0

Answer:

b. It may be used to estimate inventories for interim statements.

Explanation:

As we know that

Gross profit = Sales - the cost of goods sold

By doing the inventory valuation through the gross profit method, it estimated inventories for interim statements as these statements are covering the financial information that is less than a year so that the proper analysis could be made and in this, no auditing is required.

Therefore, for interim statements, the gross profit method is required.

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3 years ago

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4 years ago

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After the death of her husband, Gina Baker, 35, received a check for $350,000 from a life insurance company. Gina has two small

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3 years ago