Choose the Correct Statement

question 63

Multiple Choice

Choose the correct statement:

• A)APRA's APS 112 Capital adequacy: standardised approach to credit risk (APS 112) sets out the methods to be used to calculate credit-risk-adjusted assets using the standardised approach.
• B)APRA's APS 112 Capital adequacy: standardised approach to credit risk (APS 112) sets out the methods to be used to calculate credit-risk-adjusted assets using the advanced approach.
• C)APRA's APS 112 Capital adequacy: standardised approach to credit risk (APS 112) sets out the methods to be used to calculate credit-risk-adjusted assets using the combination approach.
• D)APRA's APS 112 Capital adequacy: standardised approach to credit risk (APS 112) sets out the methods to be used to calculate credit-risk-adjusted assets using the IRB approach.

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Definitions:

Ending Inventory

The final value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.

FIFO

First-In, First-Out, an inventory valuation method where goods first bought are the first to be sold, assuming that the oldest inventory items are sold before newer ones.

Costs

The amount of money expended or resources used in the production of goods or in providing services.

Average Cost Method

An inventory valuation method wherein the cost of goods sold and ending inventory is determined by taking the weighted average of all purchases.