On 1 June 2022, Dubbo Ltd Acquires Inventories for Cash

question 21

Multiple Choice

On 1 June 2022, Dubbo Ltd acquires inventories for cash of US$400 000. All of the inventories are still on hand at 30 June 2022 and have a net realisable value at that date of US$420 000. Relevant exchange rates are:
1 June 2022     US$1.00 = A$1.30
30 June 2022    US$1.00 = A$1.20
The journal entry recorded by Dubbo Ltd to remeasure the inventories at 30 June 2022 is:

• A) DR Inventories write-down expense A$16 000; CR Inventories A$16 000
• B) DR Inventories write-down expense A$42 000; CR Inventories A$42 000
• C) DR Inventories A$42 000; CR Gain on revaluation (OCI) A$42 000
• D) DR Inventories A$16 000; CR Gain on revaluation (OCI) A$16 000

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Definitions:

Five-Factor Theory

A model in psychology that describes human personality as composed of five broad traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Trait Theories

Theories in psychology that focus on the identification and measurement of specific, consistent personality characteristics.

Unconscious Processes

Mental activities beyond conscious awareness that influence thoughts, feelings, and behaviors.

Projective Measures

Personality tests that examine unconscious processes by having people interpret ambiguous stimuli.