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Which one of the following statements is not true with regard to the gross profit method of estimating inventories? The gross profit method may

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Which one of the following statements is not true with regard to the gross profit method of estimating inventories? The gross profit method may be used to determine inventory for interim financial reporting purposes without taking a physical count. The percentage used for the gross profit method is determined by using previous years' historical data. The gross profit method is not as accurate as the retail inventory method. The gross profit method may only be used with a perpetual inventory accounting system.

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