Inventories are reported on the balance sheet at historical cost.

Inventories

Items held by a company for the purpose of sale in the ordinary course of business, work in process, or materials to be consumed in the production process.

Historical Cost

The original monetary value of an asset or investment at the time it was acquired or made.

Outline the techniques employed to evaluate and record diverse elements found in balance sheets, including net accounts receivable, assets, liabilities, and equity.

Verified Answer

Elena TrifonovaMay 28, 2024

Final Answer :

False

Explanation :

Inventories are reported on the balance sheet at the lower of cost or market value, not just historical cost. This approach ensures that the inventory is not overstated on the financial statements.

Learning Objectives

Outline the techniques employed to evaluate and record diverse elements found in balance sheets, including net accounts receivable, assets, liabilities, and equity.

Inventories are reported on the balance sheet at historical cost.

Definitions

Learning Objectives

Learning Objectives

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