IAS 2 Inventories Requires That When Inventories Are Written Down

question 6

Multiple Choice

IAS 2 Inventories requires that when inventories are written down to net realisable value, they are written-down:

• A) on a class-by-class basis;
• B) on the basis of industry segment;
• C) on an item-by-item basis;
• D) according to geographical segment within the entity.

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Definitions:

Isolation

The process or state of being separated from others, which can refer to physical, social, or emotional distancing.

Business Creditors

Individuals or institutions that a company owes money to due to past transactions, such as suppliers or banks.

Partnership

Association of two or more persons who operate a business as co-owners by voluntary legal agreement.