TOPIC 1 ARFB233 Inventories

Which item below is NOT classified as inventories?

• Used motorcycles in a second-hand vehicles trader.

• Washing liquid in a laundry business.

• fabric purchase by a cloth manufacturer.

• Barber shop own several chair for their services

How many types of cost formulation used to determine the cost of sales and closing inventories of an inventories based on MFRS 102?

• Two

• Three

• Four

• Five

The inventories that consist of items that can be individually identified because of the uniqueness of their nature or acquired for a specific product, is suitable to use _________?

• FIFO

• WACO

• Specific identification

• LIFO

The inventories should be measured at the highest of cost and net realisable value.

• YES

• NO

What is the treatement of written down value of an inventories based on MFRS 102?

• Dr Inventories
  Cr COGS

• Dr COGS
  Cr Sales

• Dr COGS

  Cr Inventories

• Dr Sales
  Cr COGS