If Inventory Item X Has a Cost of $49,000 and a Net

question 29

Multiple Choice

If inventory item X has a cost of $49,000 and a net realisable value of $60,000 while inventory item Y has a cost of $2,000 and a net realisable value of $500, closing inventory will be valued at:

• A)$60,000.
• B)$62,000.
• C)$51,000.
• D)$49,500.

---

Definitions:

Other Accounts Column

A column in accounting journals or ledgers for recording entries that do not fit into the standard categories, ensuring all transactions are accounted for.

Cash Payments Journal

A financial journal that records all cash outflows or payments made by a business.

Other Accounts Cr.

This term likely refers to the credit (Cr.) entries in accounts other than those frequently categorized, perhaps implying adjustments or less common financial transactions.

Purchases Journals

Accounting journals used to record all purchases of goods and services on credit for the purpose of resale.