The Following Information Pertains to Inventory Held by a Company

question 20

Multiple Choice

The following information pertains to inventory held by a company on December 31, 2011. $$\begin{array} { l r } \text { Historical cost } & \$ 30,000 \\\text { Replacement cost } & \$ 20,000 \\\text { Net realizable value } & \$ 27,000 \\\text { Normal profit margin } & 20 \%\end{array}$$
-What amount of inventory should be reported under IFRS?

• A) $25,000.
• B) $27,000.
• C) $30,000.
• D) $5,000.
• E) $2,000. According to IFRS, inventory will be reported at lower of cost or net realizable value.

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Definitions:

Nonexecutive Personnel

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Media Scandals

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Compensating Salespeople

The practice of providing monetary and non-monetary rewards to sales staff for their performance and achievements.

Stock Ownership Incentive Plans

Programs designed to give employees the opportunity to buy or receive shares in the company they work for as a form of incentive.