According to AASB 102,one or More of Which Set of Methods

question 45

Multiple Choice

According to AASB 102,one or more of which set of methods should be used to apply the costs of inventories to particular items of inventory?

• A) Specific identification, LIFO or FIFO.
• B) Absorption costing, weighted average costing or LIFO.
• C) FIFO, specific identification or weighted average cost.
• D) Weighted average costing, ABC costing or FIFO.
• E) None of the given answers.

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Definitions:

Common Stock

A type of security that signifies ownership within a corporation, known as corporate equity ownership.

Cumulative Feature

A characteristic of preferred stock that entitles shareholders to receive dividends that were omitted in the past before any dividends can be issued to common stockholders.

Preemptive Right

A shareholder's right to maintain their proportionate ownership by buying additional shares before they are offered to the public.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which does not necessarily match the market value.