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SingaporeAccountingQuick questions
Accounting for Assets and Liabilities
Quick questions on Inventory valuation explained: H2 Principles of Accounting
4short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is effect on profit?Show answer
Closing inventory is deducted in computing cost of sales, so it feeds straight into profit:
What is q1?Show answer
Stock cost \10\,000\ after \1\,000$ of selling costs. State its value. [2 marks]
What is q2?Show answer
Closing inventory is understated by \3\,000$. State the effect on this year's profit. [2 marks]
What is q3?Show answer
Explain why inventory is not valued above cost even when it can be sold for more. [3 marks]
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