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 that is owned by the company.
c. is valued at estimated sales value.
d. is properly classified in the balance sheet.
Inventory generates revenue for a company which makes it one of the most important assets. Inventory may consist of different items based on the business activities of a company. There are three methods of measuring inventory such as first-in, first out; last-in last-out; and weighted average. All three of these methods value inventory based on cost. Inventory is included on the balance sheet.
Answer and Explanation:
A. True - inventory should consist of all inventory on hand, in warehouses, and on consignment
B. True - inventory should include inventory held on...
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from Business 112: Operations ManagementChapter 13 / Lesson 7
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