Reference no: EM132972269

Problem 1: If the selling price of inventory that has been written down to NRV in a prior period, subsequently recovers, the:

a) Previous amount of the write-down can be reversed.

b) Carrying amount of the inventory cannot be adjusted.

c) Value adjustment can be recognized immediately in equity.

d) Adjustment must be recognized in a "provision for future inventory write-downs' account".

Problem 2: What condition is not necessary when using the retail inventory method?

a) Total cost of goods sold for the period.

b) Total cost and retail price of goods purchased.

c) Total cost and retail price of goods available for sale.

d) Total sales for the period.

Problem 3: A non interest-bearing note receivable.

a) Causes no interest revenue to be recorded.

b) Includes a specific principal amount plus specified interest.

c) Includes a specific principal amount but an unspecified interest amount.

d) Includes an unspecified principal amount and an unspecified interest amount.