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Questions and Answers
Which of the following is considered an inventory asset?
Which of the following is considered an inventory asset?
- Cash
- Raw materials (correct)
- Accounts payable
- Buildings
What is net realizable value?
What is net realizable value?
- The estimated value of a liability
- The estimated profit from a sale
- The estimated selling price of an asset (correct)
- The estimated cost to realize a sale
When do grapes become inventory for the wine company?
When do grapes become inventory for the wine company?
- After the wine's bottles are sold
- Before the harvest
- Never, they are always considered biological assets
- During the one-year process cycle (correct)
According to IAS 2, which method is recommended for evaluating inventory of interchangeable goods?
According to IAS 2, which method is recommended for evaluating inventory of interchangeable goods?
In the FIFO method, which quantities are the first to be sold or used in production?
In the FIFO method, which quantities are the first to be sold or used in production?
When is the LIFO (Last In First Out) method applicable for evaluating inventory?
When is the LIFO (Last In First Out) method applicable for evaluating inventory?
When should a new category be created for inventory evaluation?
When should a new category be created for inventory evaluation?
Which method of inventory evaluation is NOT allowed by IAS 2?
Which method of inventory evaluation is NOT allowed by IAS 2?
What is the main purpose of the journal entry at the end of the year?
What is the main purpose of the journal entry at the end of the year?
What is the difference between IAS 2 and OIC 13 in terms of allowed evaluation methods?
What is the difference between IAS 2 and OIC 13 in terms of allowed evaluation methods?
According to IAS 2, which of the following is NOT considered as an inventory?
According to IAS 2, which of the following is NOT considered as an inventory?
According to IAS 2, when should inventories be recognized?
According to IAS 2, when should inventories be recognized?
According to IAS 2, how should inventories be evaluated?
According to IAS 2, how should inventories be evaluated?
According to IAS 2, what does net realizable value represent?
According to IAS 2, what does net realizable value represent?
Which method is used to value inventory in this example?
Which method is used to value inventory in this example?
When is an impairment recorded for inventories?
When is an impairment recorded for inventories?
How is the net realizable value (NRV) of inventories calculated in this example?
How is the net realizable value (NRV) of inventories calculated in this example?
What is the reason for recording an impairment of Euro 120 in this example?
What is the reason for recording an impairment of Euro 120 in this example?
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