The Inventory Record of Palm Springs Ltd

question 10

Multiple Choice

The inventory record of Palm Springs Ltd. shows 1,000 surf boards on stock that cost $50 each. During the last stock take, the accountant noted 100 old style surf boards with net realisable amount of $15. What journal entry would be required of Palm Springs to comply with AASB 102?

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Definitions:

Soy-Based Ink

An environmentally friendly ink made from soybeans, often used in the printing industry as a sustainable alternative to petroleum-based inks.

Fair-Trade

A trading partnership based on dialogue, transparency, and respect, aiming at greater equity in international trade by offering better trading conditions to, and securing the rights of, marginalized producers and workers.

Sustainability

The practice of meeting present needs without compromising the ability of future generations to meet their own needs, typically focusing on environmental conservation, social responsibility, and economic performance.

Future Generations

Refers to the populations that will live in the future, inheriting the legacy of today's societal, environmental, and economic conditions.