Inventories Are Defined by IFRS as

question 13

Multiple Choice

Inventories are defined by IFRS as

• A) held-for-sale in the ordinary course of business.
• B) in the process of production for sale in the ordinary course of business.
• C) in the form of materials or supplies to be consumed in the production process or in the providing of services.
• D) All of these answers are correct.

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Definitions:

Molding Machine

A machine used in manufacturing to shape liquid or pliable raw material using a rigid frame called a mold.

Straight-line Method

A method of calculating depreciation or amortization by evenly spreading the cost over the useful life of the asset.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its useful life.

Residual Value

The estimated value of an asset at the end of its useful life, often used in calculating depreciation.