According to IFRS, How Should Inventory Be Measured on the Balance

question 21

Multiple Choice

According to IFRS, how should inventory be measured on the balance sheet?

• A)Historical cost
• B)Market value
• C)Lower of cost or Net realizable value
• D)Net realizable value

---

Definitions:

Perfect Correlation

A statistical relationship indicating that two variables move in complete synchronization with each other, either positively or negatively.

Real World

The physical and social environment in which individuals live and interact, outside of artificial or virtual contexts.

Correlation Coefficients

Statistical measures that indicate the extent to which two or more variables fluctuate together.

Cause and Effect

The principle that every event (effect) has one or more causes; this relationship explains why things happen and allows for prediction and intervention.