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.

Understand the principles of contract avoidance due to misrepresentation or fraud and its consequences.

Identify the scenarios where restitution as a remedy is applicable.

Comprehend the limitation and loss of the power to avoid contracts due to specific actions or inactions by the deceived party.

Understand the marginalization faced by bisexual women within gay and lesbian communities.

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Definitions:

Temporal Lobe

A region of the cerebral cortex located beneath the temples, associated with processing auditory information and encoding memory.

Frontal Lobe

The part of the brain located at the front of the skull, responsible for important cognitive skills such as emotional expression, problem solving, memory, language, judgment, and sexual behaviors.

Parietal Lobe

A region of the cerebral cortex involved in processing sensory information regarding the location of parts of the body as well as interpreting visual information and processing language and mathematics.

Occipital Lobe

The region of the brain located at the back, primarily responsible for visual processing.