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Which of the following statements is incorrect regarding the lower-of-cost-or-net 


	1.	Which of the following statements is incorrect regarding the lower-of-cost-or-net realizable value (LCNRV)?
a.	Net realizable value (NRV) is the selling price less estimated costs to complete and estimated costs to make a sale.
b.	In most situations, companies price inventory on a total-inventory basis.
c.	One of two methods may be used to record the income effect of valuing inventory at net realizable value.
d.	Companies use an allowance account, the “Allowance to Reduce Inventory to Net Realizable Value.”

	2.	Under International Financial Reporting Standards (IFRS), which of the following is true regarding inventory write-downs and/or recovery of a write-down?
a.	Recovery of inventory write-downs is prohibited under IFRS.
b.	IFRS requires separate reporting of reversals of inventory write-downs.
c.	IFRS requires companies to record write-downs in a separate loss account.
d.	All of the choices are correct regarding IFRS and write-downs and/or recoveries.

	3.	Under International Financial Reporting Standards (IFRS), net realizable value is the general rule for valuing which of the following types of inventory?
a.	Commodities held by broker-traders.
b.	Computer components held for sale to manufacturers.
c.	Inventories priced on an item by-item basis, but not those priced on a total-inventory basis.
d.	All of the choices are held at NRV under IFRS.

4.	Under International Financial Reporting Standards (IFRS), agricultural activity results in which of the following types of assets?
				I.	Agricultural produce
				II.	Biological assets
a.	I only.
b.	II only.
c.	I and II.
d.	Neither I nor II.

	5.	Agricultural produce is
a.	Harvested from biological assets.
b.	Valued at the time of harvest at its cost to produce.
c.	Valued at each reporting period at its fair value less costs to sell.
d.	All of the choices are correct regarding agricultural produce.



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