Multiple Choice
Which of the following statements with respect to the gross profit method of estimating inventory is NOT correct?
A) It may be used for interim reporting.
B) It may be used to estimate ending inventory when inventory has been destroyed.
C) It uses the interrelationship between the accounts used in the cost of goods sold calculation.
D) The use of this method eliminates the need for performing an actual inventory count.
Correct Answer:
Verified
Correct Answer:
Verified
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