IAS 2 Prohibits Which of the Following from Being Included

question 10

Multiple Choice

IAS 2 prohibits which of the following from being included in the cost of inventory?

• A) trade discounts received;
• B) freight (where the terms of sale are FOB destination);
• C) production overheads;
• D) import duties.

Understand the importance of cash discounts in the decision to offer credit.

Comprehend how changes in credit terms affect the cost of credit for customers.

Recognize the terms used in credit management such as receivables period and inventory turnover.

Understand the methodologies for analyzing the creditworthiness of potential customers.

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Definitions:

Social Psychologists

Experts who study how individuals' thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Better-informed Opinion

An opinion based on comprehensive, accurate information and understanding.

Inconsistency

The state of being irregular or not remaining the same over time.

Attitudes

A psychological tendency expressed by evaluating a particular entity with some degree of favor or disfavor.