Video Productions Ltd Commenced Business Manufacturing Video Tapes on 1

question 26

Multiple Choice

Video Productions Ltd commenced business manufacturing video tapes on 1 July 2011.Summary data for the first full year of production are:

Packaging and delivery are essential to be able to sell the product.What total value should be attributed to finished goods inventory in the financial statements in accordance with AASB 102?

• A) $66 400
• B) $72 000
• C) $46 400
• D) $50 000

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Definitions:

Execution

The process of carrying out a court order or judgment, including the legal procedures involved in enforcing rights or the carrying out of the terms of a legal document.

Negligent Misrepresentation

The act of unintentionally providing false information that others rely upon, leading to financial loss or damage.

Elements Of Fraud

Elements of Fraud include the intentional misrepresentation or concealment of an important fact upon which the victim is meant to rely, and does rely, resulting in harm to the victim.

Material

Refers to the physical substances or components that are used to make or build something.