Under IAS 2, What Adjustment Needs to Be Made After

question 41

Multiple Choice

Under IAS 2, what adjustment needs to be made after an inventory write-down if the selling price subsequently increases?

• A) No adjustment is necessary. Once inventory is written down, it cannot be increased under IASB standards.
• B) It should be sold at the replacement cost.
• C) The inventory write-down should be reversed to bring it in line with the new net realizable value.
• D) Recovery of inventory loss should be debited to reflect the increase in inventory value.

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Definitions:

Avolition

A symptom of schizophrenia marked by apathy and an inability to start or complete a course of action.

Motor Cortex

The region of the cerebral cortex involved in the planning, control, and execution of voluntary movements.

Catatonic Schizophrenia

A subtype of schizophrenia characterized by a range of motor abnormalities, from a complete lack of movement to excessive motor activity or extreme negativism.

Negative Symptoms

In psychiatry, symptoms that reflect an absence or lack of normal emotional responses, motivation, or behavior, such as apathy, anhedonia, and reduced social engagement, often associated with schizophrenia.