ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 71

11. When a buyer enters into a formal, noncancelable
purchase contract, an asset and a liability are recorded at the
inception of the contract.

12. The gross profit method can be used to approximate
the dollar amount of inventory on hand.

13. In most situations, the gross profit percentage is stated
as a percentage of cost.