Question Details

Disclosures about inventory should include 



1.	One difference between IFRS and GAAP in valuing inventories is that
a.	Under IFRS, but not GAAP, inventories written down under LCNRV can be written back up to the original cost.
b.	GAAP defines market value as replacement cost where IFRS defines market as the selling price.
c.	GAAP strictly adheres to the historical cost concept and does not allow for write-downs of inventory values.
d.	IFRS, but not GAAP, requires that inventories be valued at the lower of cost or market.


2.	Disclosures about inventory should include each of the following except the
a.	basis of accounting.
b.	cost method.
c.	quantity of inventory.
d.	major inventory classifications.


3.	The following information is available for Park Company at December 31, 2011: beginning inventory $80,000; ending inventory $120,000; cost of goods sold $900,000; and sales $1,200,000. Park- inventory turnover in 2011 is
a.	12 times.
b.	11.3 times.
c.	9 times.
d.	7.5 times.


4.	The following information was available for Hoover Company at December 31, 2011: beginning inventory $110,000; ending inventory $70,000; cost of goods sold $660,000; and sales $900,000. Hoover- inventory turnover ratio in 2011 was
a.	10.0 times.
b.	7.3 times.
c.	9.4 times.
d.	6.0 times.


5.	The following information was available for Hoover Company at December 31, 2011: beginning inventory $110,000; ending inventory $70,000; cost of goods sold $660,000; and sales $900,000. Hoover- days in inventory in 2011 was
a	36.5 days.
b.	50.0 days.
c.	38.8 days.
d.	60.8 days.




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