Which of the following statements is not true?
The physical flow of goods always determines the choice of depreciation method a company chooses.
Inventory that is sold is recorded as Cost of Goods Sold on the Income Statement.
The Specific Identification method is generally used for high cost inventory.
A company's depreciation expense recorded in their financial statements can be different than that reported for income tax.
|The physical flow of goods always determines the choice of depreciation method a company chooses is not true
|The physical flow of goods matches with the inventory method the company chooses.
|Depreciation method is based on pattern of usage of asset during it's useful life.
|Inventory sold is reported as Cost of Goods Sold on the Income Statement.
|The depreciation expense for tax and book purposes can be different and is accounted as temporary difference.
|Option A is correct
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