1. Inventories shall be measured at a. Cost b. Net realizable c. Lower of cost and net realizable value d. Lower of cost and market Answer : c. Lower of cost and net realizable value
2. The cost of inventories shall be measured usin a. !I!" b. Averae Averae method c. LI!" d. #ither !I!" or averae method Answer : d. #ither !I!" or averae method $. Net realizable value is a. Current re%lacement cost b. #stimated sellin %rice c. #stimated sellin %rice less estimated cost to com%lete d. #stimated sellin %rice less estimated cost to com%lete and estimated cost of dis%osal Answer : d. #stimated sellin %rice less estimated cost to com%lete and estimated cost of dis%osal &. Inventories are usuall' written down to net realizable value a. Item b' item b. (' classification c. (' total d. (' sement Answer : a. Item b' item
). The amount of an' writedown of inventor' to net realizable value and all losses of inventor' should be a. *econized as o%eratin e+%ense in the %eriod the writedown or loss occurs.
b. *econized as other e+%ense in the %eriod the writedown or loss occurs. c. *econized as com%onent of cost of sales in the %eriod the writedown or , loss occurs. d. -eferred until the related inventor' is sold. Answer : c. *econized as com%onent of cost of sales in the %eriod the writedownor loss occurs.
Problem 18-2 Multiple Choice (IAA)
1. hich statement is incorrect reardin LCN*/0 a. Net realizable is the sellin %rice less estimated cost to com%lete and estimated cost ofdis%osal. b. In most situations entities %rice inventor' on a total inventor' basis. c. "ne of the methods ma' be used to record the income effect of valuin inventor' at net realizable value. d. #ntities use an allowance account the allowance to reduce inventor' to net realizable value.3 Answer :b. In most situations entities %rice inventor' on a total inventor' basis.
2. hich of the followin statements is true reardin inventor' writedown and reversal of writedown0 a. *eversal of inventor' writedown is %rohibited. b. 4e%arate re%ortin of reversal of inventor' writedown is re5uired. c. #ntities are re5uired to record writedown in a se%arate loss account. d. All of the choices are correct. Answer :b. 4e%arate re%ortin of reversal of inventor' writedown is re5uired.
$. LCN*/ of inventor' a. Is alwa's either the net realizable value or cost. b. 4hould alwa's be e5ual to net realizable value. c. 6a' sometimes be less than the net realizable value. d. 4hould alwa's be e5ual to the estimated sellin %rice less cost to com%lete. Answer :a. Is alwa's either the net realizable value or cost.
&. Lower of cost and net realizable value a. 7ives the lowest valuation if a%%lied to the total inventor'. b. 7ives the lowest valuation if a%%lied to ma8or rou% of inventor'. c. 7ives the lowest valuation if a%%lied to individual item of inventor'. d. 6ust be a%%lied to ma8or rou%. Answer :c. 7ives the lowest valuation if a%%lied to individual item of inventor'.
). hich of the followin is not an acce%table method of a%%l'in the LCN*/0 a. Inventor' location b. 7rou% Inventor' c. Individual Item d. Total of the inventor' Answer :a. Inventor' location
9. *e%ortin inventor' at the lower of cost and net realizable value is a de%arture from a. istorical cost b. Consistenc' c. Conservatism d. !ull disclosure Answer :a. istorical cost
;. hen inventor' declines in value below oriinal cost what is the ma+imum amount that the inventor' can be valued at0 a. 4ales %rice b. Net realizable value c. istorical cost d. 4ales %rice reduced b' estimated cost of dis%osal Answer :b. Net realizable value
<. Lower of cost and net realizable value as it a%%lies to inventor' is best described as the a. *e%ortin of a loss when there is decrease in the future utilit' below the
oriinal cost. b. 6ethod of determinin cost of oods sold. c. Assum%tion to determine inventor' flow. d. Chane in inventor' value to net realizable value. Answer : a. *e%ortin of a loss when there is decrease in the future utilit' below theoriinal cost.
=. hich method ma' be used to record a loss due to a %rice decline in the value o inventor'0 a. Loss method b. 4ales method c. Cost of oods sold method d. Loss method and cost of oods sold method Answer :d. Loss method and cost of oods sold method
1>. hen the cost of oods sold method is used to record inventor' at net realizable value a. There is a direct reduction in the sellin %rice. b. A loss is recorded directl' in the inventor' account b' debitin loss. c. "nl' the %ortion of the loss attributable to inventor' sold is recorded. d. The net realizable value for endin inventor' is substituted for cost and the loss is buried in cost of oods sold. Answer : d. The net realizable value for endin inventor' is substituted for cost and the loss is buried in cost of oods sold.
Problem 18-3 Multiple Choice (IAA)
1. ow should sales staff commission be dealt with when valuin inventor' at LCN*/0 a. Added to cost b. Inored
c. -educted in arrivin at net realizable value d. -educted from cost Answer :c. -educted in arrivin at net realizable value 2. ow should trade discounts be dealt with when valuin inventor' at LCN*/0 a. Added to cost b. Inored c. -educted in arrivin at net realizable value d. -educted in arrivin at cost Answer :d. -educted in arrivin at cost
$. ow should %rom%t %a'ment discount be dealt with when valuin inventor' at LCN*/0 a. Added to cost b. Inored c. -educted in arrivin at net realizable value d. -educted from cost Answer :b. Inored &. ow should im%ort duties be dealt with when valuin inventor' at LCN*/0 a. Added to cost b. Inored c. -educted in arrivin at net realizable value d. -educted from cost Answer: a. Added to cost
). Inventor' should be measured at a. Lower of cost and fair value b. Lower of cost and net realizable value c. Lower of cost and net sellin %rice d. All of these are used in measurin inventor' Answer : b. Lower of cost and net realizable value
Problem 18-4 Multiple Choice (IAA)
1. The credit balance that arises when a loss on a %urchase commitment is reconized should be
a. ?resented as a current liabilit' b. 4ubtracted from endin inventor' c. ?resented as com%onent of other com%rehensive income d. ?resented in the income statement Answer :a. ?resented as a current liabilit'
2. If a material amount of inventor' has been ordered throuh a formal %urchase contract atthe end of re%ortin %eriod for future deliver' at firm %rices a. This fact must be disclosed. b. -isclosure is re5uired onl' if %rices have declined since the date of order. c. -isclosure is re5uired onl' if %rices have risen substantiall'. d. An a%%ro%riation of retained earnins is necessar'. Answer :a. This fact must be disclosed.
$. hen a %ortion of inventor' has been %leded as securit' for a loan a. The value of the inventor' %leded should be deducted from the debt. b. An e5ual amount of retained earnins should be a%%ro%riated. c. The fact should be disclosed but the amount of current assets should not be affected. d. The cost of the %leded inventor' should be transferred from current asset to noncurrent asset. Answer :c. The fact should be disclosed but the amount of current assets should notbe affected.
&. An e+am%le of an inventor' accountin %olic' that should be disclosed is a. #ffect of inventor' %rofit caused b' inflation. b. Classification of inventor' into raw materials oods in %rocess and finished oods. c. Identification of ma8or su%%liers. d. 6ethod used for inventor' costin Answer :d. 6ethod used for inventor' costin
Problem 18-5 Multiple Choice (IAA)
1. Commodities of broker@traders are measured at a. !air value
b. !air value less cost of dis%osal c. Cost d. Current re%lacement cost Answer : b. !air value less cost of dis%osal
2. Commodit' broker@traders a. ?roduce commodities such as rice corn or %recious metals. b. old inventor' %rimaril' to sell in the near term and enerate a %rofit from %ricefluctuation. c.6easure inventories at the lower of cost and net realizable value. d. All of the choices are correct reardin broker@traders Answer : b. old inventor' %rimaril' to sell in the near term and enerate a %rofit from %rice fluctuation.
$. Net realizable value is the eneral rule for valuin which inventor'0 a. Commodities held b' broker@traders b. Com%uter com%onents held for sale c. Inventories %riced on an item b' item basis d. All of these inventories are measured at net realizable value Answer :a. Commodities held b' broker@traders
&. Net realizable value is used to measure which inventor'0 a. Aricultural Inventor' b. 6inerals c. Commodities held b' broker@traders d. All of these are measured at net realizable value Answer. d. All of these are measured at net realizable value
). hich of the followin financial attributed would not be used to measure inventor'0 a. istorical cost b. Current re%lacement cost c. Net realizable value d. ?resent value at future cash flows Answer: d. ?resent value at future cash flows
Problem 19-1 Multiple choice
1. (ioloical assets a. Are found onl' in (iotech entities b. Are livin animals or livin %lants and must disclosed as a se%arate line item inthe statement of financial %osition c. 6ust be measured at cost d. -o not enerall' have future economic benefits Answer: b. Are livin animals or livin %lants and must disclosed as a se%arate line item in the statement of financial %osition
2. It is the manaement b' an entit' of the bioloical transformation and harvest of bioloical assets for sale or for conversion into aricultural %roduce into additional bioloical asset. a.Aricultural activit' b.(ioloical activit' c.#conomic activit' d.-evelo%ment activit' Answer: a. Aricultural activit'
$.(ioloical assets are measured at a.Cost b.Lower of cost and net realizable value c.Net realizable value d.!air value less cost to dis%osal Answer: d. !air value less cost to dis%osal
&.Aricultural %roduce is measured at a.!air value b.!air value less cost of dis%osal at the %oint of harvest
c.Net realizable value d.Net realizable value less normal %rofit marin Answer: b. !air value less cost of dis%osal at the %oint of harvest ).Aricultural %roduce is a.The harvested %roduct from bioloical asset b./alued at the time of harvest at the cost of %roduction c./alued at each re%ortin %eriod at fair value less cost of dis%osal d.All of the choices are correct reardin aricultural %roduct Answer: a. The harvested %roduct from bioloical asset
9.Aricultural activit' results in which of the followin t'%e of asset0 a.(ioloical asset onl' b.Aricultural %roduce onl' c.(oth bioloical asset and aricultural %roduce d.Neither bioloical asset nor aricultural %roduce Answer: c. (oth bioloical asset and aricultural %roduce
;.Aricultural activit' includes all of the followin except a.*aisin livestock b.?erennial cro%%in c.A5uaculture d."cean fishin Answer: d. "cean fishin <.(ioloical transformation results from asset chanes throuh all of the followin except a.7rowth b.-eeneration c.?rocreation d. ?roduction of aricultural %roduce Answer: d. ?roduction of aricultural %roduce
=.It is a market in which transactions for the asset or liabilit' take %lace with sufficient reularit' and volume to %rovide %ricin information on an oin basis. a.Active market b.?rinci%al market c.7lobal market d.!inancial market Answer: a. Active market
1>.hich of the followin should not be considered cost of dis%osal0 a.Commission to broker and dealer b.Lev' b' reulator' aenc' c.Transfer ta+ d.Trans%ort cost Answer: d.Trans%ort cost
Problem 19-2 Multiple choice
1.7enerall' s%eakin bioloical assets relatin to aricultural activit' shall be measure usin a.istorical cost b.istorical less de%reciation less im%airment c.A fair value a%%roach d.Net realizable value Answer: c. A fair value a%%roach
2.An entit' had a %lantation forest that is likel' to be harvested and sold in $> 'ears. The income shall be accounted for in which of the followin0 a.No income shall be re%orted annuall' until first harvest and sale in $> 'ears b.Income shall be measured annuall' and re%orted usin a fair value a%%roach that reconizes and measures bioloical rowth c.The eventual sale %roceeds shall be estimated and matched to the %rofit and loss account over the $>@'ear %eriod. d.The %lantation forest shall be measured ever' ) 'ears and the increase in value shall be shown in the statement of com%rehensive income Answer: b. Income shall be measured annuall' and re%orted usin a fair value a%%roach that reconizes and measures bioloical rowth
$.hich of the followin statements is true reardin aricultural %roduce0 a.In all cases an entit' shall measure aricultural %roduce at fair value less cost of dis%osal at the %oint harvest. b.The %revailin view is that the fair value of aricultural %roduce at the %oint of harvest can alwa's be measured reliabl' c.The fair value measurement of aricultural %roduce sto%s at the time of harvest d.All of these statements are true reardin aricultural %roduce. Answer: d. All of these statements are true reardin aricultural %roduce.
&.hat is the measurement basis for valuin bioloical assets and aricultural %roduce0 a.istorical cost b.Current cost c.?resent value d.!air value Answer: d. !air value
).here the fair value of the bioloical asset cannot be determined reliabl' the bioloical asset shall measured at a.Cost b.Cost less accumulated de%reciation c.Cost less accumulated de%reciation and accumulated im%airment loss d.Net realizable value Answer: c. Cost less accumulated de%reciation and accumulated im%airment loss
9.hich of the followin is unlikel' to be in fair value measurement0 a.uoted %rice of an identical asset in an active market b.uoted %rice of a similar asset in an active market c.The %resent value of the e+%ected net cash flows from the asset d.#+ternal inde%endent valuation Answer: d. #+ternal inde%endent valuation
;.A ain or loss arisin on the initial reconition of a bioloical asset and from a chane in the fair value less cost dis%osal of a bioloical asset shall be included in a.?rofit or loss for the %eriod b."ther com%rehensive income c.A se%arate revaluation reserve d.An a%%ro%riation reserve Answer: a. ?rofit or loss for the %eriod
<.here there is a lon ain or mutation %rocess after harvest the accountin for such %roducts shall be dealt with b' a.?A4 &1 Ariculture b.?A4 2 Inventories c.?A4 19 ?ro%ert' %lant and e5ui%ment d.?A4 &> Investment %ro%ert' Answer: b. ?A4 2 Inventories
=.hich of the followin information shall be disclosed in relation to aricultural activit'0 a.4e%arate disclosure of the ain or loss relatin to bioloical asset and aricultural %roduce b.The areate ain or loss arisin on the initial reconition of bioloical asset and aricultural %roduce and from the chane in fair value less cost dis%osal of bioloical asset c.The total ain or loss from bioloical asset aricultural %roduce and from chanes in fair value less cost of dis%osal of bioloical asset d.There is no re5uirement to disclose se%aratel' an' ain or loss
Answer: b. The areate ain or loss arisin on the initial reconition of bioloical asset and aricultural %roduce and from the chane in fair value less cost dis%osal of bioloical asset
1>.hen aricultural %roduce is harvested the harvest shall be accounted for as inventor'3. !or the %ur%ose cost at the date of harvest is deemed to be a.The fair value less cost of dis%osal at the %oint of harvest. b.The historical cost c.The historical cost less accumulated im%airment losses d.6arket value Answer: a. The fair value less cost of dis%osal at the %oint of harvest.
Problem 19-3 Multiple choice
1.hich of the followin is not dealt with b' IA4 &10 a.The accountin for bioloical asset b.The initial measurement of aricultural %roduce harvested from the entit'Bs bioloical asset c.The %rocessin of aricultural %roduce after harvestin d.The accountin treatment of overnment rant received in res%ect of bioloical asset Answer: c. The %rocessin of aricultural %roduce after harvestin
2.Land that is related to aricultural activit' is measured a.At fair value b.In accordance with IA4 19 ?ro%ert' ?lant and #5ui%ment or IA4 &> Investment ?ro%ert' c.At fair value in combination with bioloical asset that is bein rown on the land d.At the resale value se%arate from the bioloical asset that is bein rown on the land Answer: b. In accordance with IA4 19 ?ro%ert' ?lant and #5ui%ment or IA4 &> Investment ?ro%ert'
$.Anunconition!l overnment rant related to a bioloical asset that has been measured at fair value less cost of dis%osal shall be reconized as a.Income when the rant becomes receivable b.A deferred credit when the rant becomes receivable c.Income when the rant a%%lication has been submitted d. A deferred credit when the rant has been a%%roved Answer: a. Income when the rant becomes receivable
&.If a overnment rant related to bioloical asset is conditional the rant shall be reconized as a.Income when the conditions attachin to the rant are met b.Income when the rant has been a%%roved c.A deferred credit when the conditions attached to the rant are met d.A deferred credit when the rant is a%%roved Answer: a Income when the conditions attachin to the rant are met
).here there is a %roduction c'cle of more than one 'ear for a bioloical asset IA4 &1 encouraes se%arate disclosure of the a.?h'sical chane onl' b.?rice chane onl' c.Total chane in value d.?h'sical chane and %rice chane Answer: d. ?h'sical chane and %rice chane
9.All of the followin criteria must be satisfied before a bioloical asset can be reconized in an entit'Bs financial statements e+ce%t a.The entit' controls the asset as a result of %ast event b.It is %robable that future economic benefits relatin to the asset will flow to the entit' c.An active market for the asset e+ists d.The fair value or cost of the asset can be measured reliabl' Answer: c. An active market for the asset e+ists
;.All of the followin would be classified as biolo"ic!l !##et$ except a.-air' cattle b.Chickens c.#s d.Trees Answer: c. #s
<.All of the followin would be classified as !"ricultur!l prouce0 a. Tree b.(ush c.(utter d.A%%le Answer: d. A%%le
=.Animals related to recreational activities for e+am%le ame %arks and zoos includin the natural breedin of animals in zoos shall be accounted for what under what standard0 a.IA4 &1 Ariculture
b.IA4 19 ?ro%ert' %lant and e5ui%ment c.IA4 &1 Investment ?ro%ert' d.#ither IA4 &1 or IA4 19 Answer: b. IA4 19 ?ro%ert' %lant and e5ui%ment
1>. Accordin to IA4( bearer %lants such as ra%e vines rubber trees and oil %alms which are used solel' to row %roduce over several %eriods should be accounted for as a.(ioloical assets with disclosure b.(ioloical assets without disclosure c.?ro%ert' %lant and e5ui%ment d.Noncurrent investments Answer: c. ?ro%ert' %lant and e5ui%ment
Problem 2%-1 Multiple choice
1. hich will not re5uire an estimate of inventor'0 a. Inventor' destro'ed b' t'%hoon b. ?roof of the reasonable accurac' of the %h'sical inventor' c. Interim financial statements are %re%ared d. -etermination of the endin inventor' to be re%orted in the statement of financial %osition at 'ear@end Answer: c. Interim financial statements are %re%ared
2. ow is the ross %rofit method used as it relates to inventor' valuation0 a. To verif' the accurac' of the %er%etual inventor' record. b. To verif' the accurac' of the %h'sical inventor'. c. To estimate cost of oods sold. d. To %rovide an inventor' value under !I!" Answer: c. to estimate cost of oods sold.
$. hich of the followin is not a basic assum%tion of the ross %rofit method0 a. The beinnin inventor' %lus %urchases e5ual total oods to be accounted for. b. 7oods not sold must be hand c. The sales reduced to cost basis when deducted from the sum of the beinnin inventor' and %urchases would result to inventor' on hand d. The amount of %urchases and amount of sales remain relativel' unchaned from
the com%arable %revious %eriod. Answer: d. The amount of %urchases and amount of sales remain relativel' unchaned from the com%arable %revious %eriod.
&. If the ross %rofit rate is based on cost the cost of oods sold is com%uted as a. Net sales times cost ratio b. Net sales divided b' sales ratio c. 7ross sales times cost ratio d. 7ross sales divided b' sales ratio Answer: b. Net sales divided b' sales ratio
). The ross marin method of estimatin endin inventor' ma' be used for all of the followin e+ce%t a. Internal as well as e+ternal interim re%orts b. Internal as well as e+ternal 'ear end re%ort c. #stimate of inventor' destro'ed b' fire or other casualt' d. *ouh test of the validit' of an inventor' cost determined under either %eriodic or %er%etual s'stem. Answer: b.Internal as well as e+ternal 'ear@ end re%ort
9. The use of the ross %rofit method assumes a. The amount of ross %rofit is the same as in %rior 'ears. b. 4ales and cost of oods sold have not chaned from %revious 'ears. c. Inventor' values not increased from %revious 'ears. d. The relationshi% between sellin %rice and cost of oods sold is similar to %rior 'ears. Answer: a. The amount of ross %rofit is the same as in %rior 'ears.
;. The ross %rofit method of estimatin inventor' would not be useful when a. A %eriodic s'stem is use and inventories are re5uired for interim statements. b. Inventories have been destro'ed or lost b' fire theft or other casualt' and the s%ecific data re5uired for inventor' valuation are not available. c. There is a sinificant chane in %roduct bein sold. d. The relationshi% between ross %rofit and sales remain stable over time Answer: c. There is a sinificant chane in %roduct bein sold
<. The ross %rofit method of inventor' valuation is not valid when a. There is substantial increase in the 5uantit' of inventor' durin the 'ear. b. There is substantial increase in the cost of inventor' durin the 'ear. c. The ross marin %ercentae chanes sinificantl' durin the 'ear. d. All endin inventor' is destro'ed b' fire before it can be counted. Answer: c. The ross marin %ercentae chanes sinificantl' durin the 'ear. . =. The ross %rofit method of inventor' valuation is invalid when a. A %ortion of inventor' is destro'ed b. There is a substantial increase in inventor' durin the 'ear. c. There is no beinnin inventor' because it is the first 'ear of o%eration d. The ross %rofit %ercentae a%%licable to oods in endin inventor' is different from the %ercentae a%%licable to oods sold durin the %eriod. Answer: a %ortion of inventor' is destro'ed
1>.hich of the followin statements is not valid about the ross %rofit method0 a. It ma' be used b' auditors b. It is an acce%table accountin %rocedure c. It ma' be used to estimate inventor' for interim statements d. It ma' be used to estimate inventor' for annual statements. Answer d. It ma' be used to estimate inventor' for annual statements. . Problem 2%-1 Multiple choice 1. hich will not re5uire an estimate of inventor'0 a. Inventor' destro'ed b' t'%hoon b. ?roof of the reasonable accurac' of the %h'sical inventor' c. Interim financial statements are %re%ared d. -etermination of the endin inventor' to be re%orted in the statement of financial %osition at 'ear@end Answer: c. Interim financial statements are %re%ared
2. ow is the ross %rofit method used as it relates to inventor' valuation0 a. To verif' the accurac' of the %er%etual inventor' record. b. To verif' the accurac' of the %h'sical inventor'. c. To estimate cost of oods sold. d. To %rovide an inventor' value under !I!"
Answer: c .To estimate cost of oods sold.
$. hich of the followin is not a basic assum%tion of the ross %rofit method0 a. The beinnin inventor' %lus %urchases e5ual total oods to be accounted for. b. 7oods not sold must be hand c. The sales reduced to cost basis when deducted from the sum of the beinnin inventor' and %urchases would result to inventor' on hand d. The amount of %urchases and amount of sales remain relativel' unchaned from the com%arable %revious %eriod. Answer: d. The amount of %urchases and amount of sales remain relativel' unchaned from the com%arable %revious %eriod.
&. If the ross %rofit rate is based on cost the cost of oods sold is com%uted as a. Net sales times cost ratio b. Net sales divided b' sales ratio c. 7ross sales times cost ratio d. 7ross sales divided b' sales ratio Answer: b. Net sales divided b' sales ratio
). The ross marin method of estimatin endin inventor' ma' be used for all of the followin e+ce%t a. Internal as well as e+ternal interim re%orts b. Internal as well as e+ternal 'ear end re%ort c. #stimate of inventor' destro'ed b' fire or other casualt' d. *ouh test of the validit' of an inventor' cost determined under either %eriodic or %er%etual s'stem. Answer: b. Internal as well as e+ternal 'ear end re%ort
9. The use of the ross %rofit method assumes a. The amount of ross %rofit is the same as in %rior 'ears. b. 4ales and cost of oods sold have not chaned from %revious 'ears. c. Inventor' values not increased from %revious 'ears. d. The relationshi% between sellin %rice and cost of oods sold is similar to %rior 'ears. Answer: a. The amount of ross %rofit is the same as in %rior 'ears.
;. The ross %rofit method of estimatin inventor' would not be useful when a. A %eriodic s'stem is use and inventories are re5uired for interim statements. b. Inventories have been destro'ed or lost b' fire theft or other casualt' and the s%ecific data re5uired for inventor' valuation are not available. c. There is a sinificant chane in %roduct bein sold. d. The relationshi% between ross %rofit and sales remain stable over time Answer c. There is a sinificant chane in %roduct bein sold.
<. The ross %rofit method of inventor' valuation is not valid when a. There is substantial increase in the 5uantit' of inventor' durin the 'ear. b. There is substantial increase in the cost of inventor' durin the 'ear. c. The ross marin %ercentae chanes sinificantl' durin the 'ear. d. All endin inventor' is destro'ed b' fire before it can be counted. Answer: c. The ross marin %ercentae chanes sinificantl' durin the 'ear.
=. The ross %rofit method of inventor' valuation is invalid when a. A %ortion of inventor' is destro'ed b. There is a substantial increase in inventor' durin the 'ear. c. There is no beinnin inventor' because it is the first 'ear of o%eration d. The ross %rofit %ercentae a%%licable to oods in endin inventor' is different from the %ercentae a%%licable to oods sold durin the %eriod. Answer : a. A %ortion of inventor' is destro'ed
1>. hich of the followin statements is not valid about the ross %rofit method0 a. It ma' be used b' auditors b. It is an acce%table accountin %rocedure c. It ma' be used to estimate inventor' for interim statements d. It ma' be used to estimate inventor' for annual statements. Answer: d. It ma' be used to estimate inventor' for annual statements.
