AASB 102 Requires That Inventory Is Valued At

question 17

Multiple Choice

AASB 102 requires that inventory is valued at:

• A) The lower of cost and recoverable value, on an item-by-item basis where practicable.
• B) Cost or fair value for classes of assets and services that are defined as inventories.
• C) The lower of cost and net realisable value, on an item-by-item basis where practicable.
• D) Cost or deprival value, whichever is the lower, for classes of inventories.
• E) None of the given answers.

---

Definitions:

Assets

Economic resources or valuable items that a business owns or controls with the expectation that they will provide future benefits.

Mismanagement Decisions

Poor or inefficient decisions made in the management of a company that can lead to negative outcomes or failure.

Small Businesses

Enterprises characterized by a small number of employees, limited revenue, and often locally based, playing a significant role in the economy.

Industry Average Analysis

A comparison of a firm’s financial ratios to the industry averages.