Inventories Flashcards
1
Q
What are the conditions for inventory?
A
It must be in the ordinary course of business, in the process of production for sale
2
Q
What is the accounting treatment for closing stock?
A
It should be valued at the lower of cost or net realisable value (selling value)
3
Q
What are the costing methods for stock?
A
FIFO, LIFO, Weighted average
However standards do not allow LIFO due to understating the BS
4
Q
What is inventory?
A
Goods or services bought for resale, WIP, raw materials, finished goods
