Inventory

a. storage costs are excluded, unless those costs are necessary in the production process before
a further production stage

b. Sales returns and allowances are debited and Accounts receivable is credited when
merchandise is returned under the periodic inventory method.

c. Is correct

d. Land acquired for resale and partially completed goods are inventory.

Statement I. It is the buyer that shoulders the loading and shipments costs.

Statement II. In FOB destination, title passes when merchandise is already at the buyer’s destination.

a. Freight and other handling charges in the transfer of goods is inventoriable by the consignor, not
the consignee.

b. In the perpetual inventory method, AP is debited and merchandise inventory is credited.

c. Shares and bonds held for resale are inventoriable.

d. Is correct
 d. is correct

Lower of cost and Net Realizable Value

B is correct

A is correct

A is correct

A is correct
 a. The credit balance that arises when a loss on purchase commitment is recognized
should be presented as a current liability.

b. Is correct

c. LCNRV is rarely equal to NRV because NRV is just the estimated selling price less
estimated cost to complete and estimated cost of disposal while LCNRV is the lowest
amount after cost and NRV is compared.

d. Reversal of inventory write down is not prohibited. It is only not present when a direct
method is used, but should be present when the allowance method is used.

Inventory estimation

a. Is incorrect

c. Is incorrect
b. Is correct

d. is correct

C is correct

a. Land acquired for resale is inventory because it is being sold in the ordinary course of
the business

b. Shares and bonds are inventory because it is sold in the ordinary course of business

c. Partially completed goods are still inventory

d. Machinery used for production process is PPE

Correct answer is C

Correct answer is C

Correct answer is C

correct answer is D
Correct answer is B

Correct answer is A

Correct answer is C

Correct answer is A
Correct answer is D

Correct answer is D

Correct answer is C

PPE, LAND, BUILDING, AND MACHINERY

Correct answer is A

Correct answer is A
Correct answer is E

Correct answer is A

Correct answer is A

DEPRECIATION

Correct answer is D
Correct answer is D

Correct answer is A

Correct answer is B

Correct answer is B

Correct answer is C

Correct answer is B
Correct answer is B

REV AND IOA

ANSWER IS B

ANSWER IS B

ANSWER IS D
ANSWER IS B

ANSWER IS A

ANSWER IS D

ANSWER IS D

REVALUATION SURPLUS;SOUND VALUE

ANSWER IS B

ANSWER IS A

CORPORATE ASSETS;CASH GENERATING UNIT

VALUE IN USE;IMPAIRMENT