If the Selling Price of Inventory That Has Been Written

question 4

Multiple Choice

If the selling price of inventory that has been written down to net realisable value in a prior period, subsequently recovers, the:

• A) previous amount of the write-down can be reversed;
• B) carrying amount of the inventory cannot be adjusted;
• C) value adjustment can be recognised immediately in equity;
• D) adjustment must be recognised in a 'provision for future inventory write-downs' account.

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Definitions:

Autonomic Reflexes

Reflex actions within the body that are involuntarily controlled by the autonomic nervous system, influencing functions such as heart rate and digestion.

Stretch Reflexes

The muscle contraction in response to stretching within the muscle, a mechanism known to maintain muscle tone.

Withdrawal Reflexes

Automatic, quick responses of the body part to a painful stimulus, resulting in pulling away from the source of pain to prevent injury.

Polysynaptic

Involving multiple synapses between more than two neurons in a reflex or neural pathway.