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SingaporeAccountingQuick questions

Inventory and Bank Reconciliation

Quick questions on Inventory valuation: N(A)-Level Principles of Accounts

3short 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 q1?
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A line of inventory cost \900buthasanetrealisablevalueof but has a net realisable value of \750750. State the value to use. [1 mark]
What is q2?
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State what net realisable value means. [2 marks]
What is q3?
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Explain why valuing inventory above cost would break the prudence concept. [2 marks]

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