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An example of an inventory accounting policy that should be disclosed in Summary of Significant Accounting Policies is the:_________ . a. amount of income resulting from the involuntary liquidation of LIFO b. major backlogs of inventory orders. c. method used for pricing inventory. d. division of inventory by raw materials, work-in-process, finished goods.

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Nyctalus

Answer:

Option C

Explanation:

The overview of important accounting rules is a portion of the end notes that accompanies the financial statements of an company, outlining the key policies that the finance department is following. The policy overview is prescribed by the accounting system in force (like the GAAP or IFRS).

The approach a corporation uses to assess the inventory expense (inventory valuation) affects the financial reports explicitly. Thus, it should be depicted in summary of accounting policies.

The one that exemplifies an inventory accounting policy would be:

C). method used for pricing inventory.

Inventory Policy

The financial statement at the end of the accounting books exemplifies one of the significant rules of accounting.

This highlights the major policies to be followed by the company and its finance team.

The outline of policies acting are provided through this and hence, they will help in offering the method for pricing of inventory in the firm.

Thus, option C is the correct answer.

Learn more about "Inventory" here:

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