During the year ended 31 December 20X6 Grasmere purchasedthe following items for resale:DateNumber of itemsCost price per itemMarch20USD11June20USD13This was a new product line and by 31 December 20X6 twenty items were left unsold. At that date they were being sold at USD12 an item and it would have cost Grasmere USD10 an item to buy further supplies. Grasmere determines cost of inventory under the FIFO method.At what amount should finished goods inventory be shown in the statement of financial position on 31 December 20X6?

1 .The inventory value for the financial statements of Q for the year ended 31 December 20X1 was based on an inventory count on 4 January 20X2, which gave a total inventory value of USD836,200.Between 31 December and 4 January 20X2, the following transactions were recorded:USDPurchases of goods for resale8,600Sales revenue (gross profit margin 30%)14,000Faulty goods returned by Q to supplier700What adjusted figure should be included in the financial statements for inventories at 31 December 20X1?

A USD818,500 B USD834,300 C USD838,100 D USD853,900

题型: 单选题 提问时间: 2021-08-24

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2 .IAS 2 Inventories defines the extent to which overheads are included in the cost of inventories of finished goods. Which of the following statements about the IAS 2 requirements relating to overheads are true?(1) Finished goods inventories may be valued on the basis of labour and materials cost only, without including overheads.(2) Factory management costs should be included in fixed overheads allocated to inventories of finished goods.

A 1 only B 2 only C Both 1 and 2 D Neither 1 nor 2

题型: 单选题 提问时间: 2021-08-24

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3 .Which of the following are correct?(1) The carrying amount of inventory should be as close as possible to net realisable value(2) The valuation of finished goods inventory must include production overheads(3) Production overheads included in valuing inventory should be calculated by reference to the company’s normal level of production during the period(4) In assessing net realisable value, inventory items must be considered separately, or in groups of similar items, not by taking the inventory value as a whole

A 1 and 2 only B 1 and 3 only C 2, 3 and 4 D 3 and 4 only

题型: 单选题 提问时间: 2021-08-24

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4 .The net realisable value of inventory is defined as the actual or estimated selling price less all costs to be incurred in marketing, selling and distribution.Which of all the following additional items should be deducted in calculating the net realisable value of inventory?

A Trade discount No Settlement discount Yes Cost to completion Yes B Trade discount Yes Settlement discount No Cost to completion Yes C Trade discount Yes Settlement discount Yes Cost to completion No D Trade discount Yes Settlement discount...

题型: 单选题 提问时间: 2021-08-24

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5 .Which of the following items should be included in the cost of inventory of a serviceprovider?(1) Salary of staff engaged in the service contract(2) Profit margin factored into the contract price(3) Depreciation of office computer used by staff engaged on contract(4) Salary of sales staff who negotiated the service contract

A 1 and 2 B 1 and 3 C 2 and 4 D 3 and 4

题型: 单选题 提问时间: 2021-08-24

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7 .Toulouse makes three different products. The followingtable shows the inventory valuation for each of the products under differentbases:First in first outLast in first outNet realizable valueUSDUSDUSDProduct I101112Product II131514Product III957——32 ————31 ————33——At what value should Toulouse’s inventory be stated in accordance with IAS 2Inventories?

A USD28 B USD30 C USD31 D USD32

题型: 单选题 提问时间: 2021-08-24

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8 .Which ONE of the following would be shown in a statement of cash flow using the directmethod but not in a statement of cash flow using the indirect method of calculating cashgenerated from operations?

A Cash payments to employees B Increase/(decrease) in receivables C Depreciation D Finance costs

题型: 单选题 提问时间: 2021-08-24

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9 .IAS 7 Statement of Cash Flows sets out the three main headings to be used in a statement of cash flows. Items that may appear on a statement of cash flows include:(1) Tax paid(2) Purchase of investments(3) Loss on disposal of machinery(4) Purchase of equipmentWhich of the above items would be included under the heading “Cash flows fromoperating activities” according to IAS 7?

A 1 and 2 only B 1 and 3 only C 2 and 4 only D 3 and 4 only

题型: 单选题 提问时间: 2021-08-24

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10 .An extract from a statement of cash flows prepared by a trainee accountantis shown below:USDmProfit before taxation28Adjustments for:Depreciation(9)Operating profit before working capital changes––19Decrease in inventories3Increase in receivables(4)Increase in payables(8)Cash generated from operations––10––––Which of the following criticisms of this extract are correct?(1) Depreciation charges should have been added, not deducted(2) Decrease in inventories should have been deducted, not added(3) Increase in receivables should have been added, not deducted(4) Increase in payables should have been added, not deducted

A 1 and 3 only B 1 and 4 only C 2 and 3 only D 2 and 4 only

题型: 单选题 提问时间: 2021-08-24

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