REFERENCE: Ref.11_02 The Following Information Pertains to Inventory Held by a Company

question 48

Multiple Choice

REFERENCE: Ref.11_02
The following information pertains to inventory held by a company on December 31,2008.
-What is the amount of inventory loss shown on the income statement under IFRSs?

• A)$1,000.
• B)$2,000.
• C)$3,000.
• D)$4,000.
• E)$6,000.

---

Definitions:

Ponzo Illusion

A visual illusion where two horizontal lines of equal length appear to be of different lengths because of converging parallel lines in the background.

Müller-Lyer Illusion

A visual illusion where lines of the same length appear to be of different lengths due to the addition of arrow-like fins.

Just Noticeable Threshold

The minimum difference in stimulation that an individual can detect 50% of the time, also known as the difference threshold.

Aerial Perspective

Aerial Perspective, also known as atmospheric perspective, is the effect by which objects appear less distinct and more bluish the farther they are from the observer, due to the atmosphere's effect on the colors and lights.