Which of the following statements concerning the retail method of inventory accounting is false? a....
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Accounting
Which of the following statements concerning the retail method of inventory accounting is false? a. The retail method does not give an automatic conservative valuation of ending inventory. b. The taking of physical inventory is easier with the retail method of inventory accounting since items are recorded on the inventory sheets at only their selling (retail) prices instead of their retail and cost prices. c. By using the retail method of inventory accounting, shortages can be determined by comparing the book inventory figure to the physical inventory figure. d. The retail method of inventory accounting serves as an excellent basis for insurance claims. e. Accounting statements can be prepared and the retailer can determine the value of inventory on hand at any point in time.
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