Ming Limited Had the Following Items of Inventories at Reporting

question 10

Multiple Choice

Ming Limited had the following items of inventories at reporting date.

What is the adjustment necessary at reporting date?

• A) DR Inventories $50
• B) DR Inventories $100
• C) CR Inventories $50
• D) CR Inventories $0

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Definitions:

Personal Use

The use of a company's assets or services by an individual for their private needs, not for business purposes.

Income Ratio

A financial metric used to assess a company's ability to generate income relative to revenue, sales, assets, or equity.

Capital Balances

The amount of money or value of assets contributed by the owners or partners in a company, not including earnings or profits.

Service

An intangible product offered to customers that does not result in ownership of anything.