Reference no: EM132969891

Problem 1: Inventories shall be measured at:

a) Cost

b) Net realizable value

c) Lower of cost and net realizable value

d) Higher of cost and net realizable value

Problem 2: The gross profit method of estimating ending inventory may be used for all of the following, except:

a) Internal as well as external interim reports

b) Internal as well as external year-end reports

c) Estimate of inventory destroyed by fire or other casualty

d) Rough test of validity of an inventory cost determined under the periodic or perpetual system

Problem 3: Sales where the goods are delivered only when the buyer makes final payment are called:

a) Bill and hold sales

b) Sales subject to installation or inspection

c) Consignment sales

d) Lay away sales