According to CIAS 2, the basis of valuation of inventory is

• A- cost or market value.

• B- lower of cost and market value.

• C- lower of cost and net realisable value.

• D- lower of average cost and market value.

Which of the following costs should be included in valuing the inventories of a

manufacturing company?

(i) Carriage inwards

(ii) Carriage outwards

(iii) Depreciation of factory plant

(iv) General administrative overheads

• A- i, ii, iii, and iv

• B- i, ii, and iv

• C- i, ii and iii

• D- i and iii.

What is the effect of overstated closing inventory?

• A- Understated gross profit

• B- Overstated purchases

• C- Understated purchases

• D- Overstated gross profit

For the financial year to 31 December Year 9, a business entity had opening

inventory of 27,000,000 KHR and closing inventory of 47,000,000 KHR.

Which of the following accounting entries should be made in the accounting

records of the business entity at the end of the financial year, in order to prepare

the statement of financial position and the statement of profit or loss?

• 
• 
• 
• 

What is the effect of overstated opening inventory?

• A- Understated gross profit

• B- Overstated purchases

• C- Understated purchases

• D- Overstated gross profit

The following is given in relation to raw materials:

O = Opening Inventory

P = Purchases

R = Purchases returns

C = Carriage inwards

I = Import duties

Z = Closing Inventory

The cost of raw materials available for use is

• A = O + P + C

• B = O + P + C - Z

• C = O + P + C + I - R

• D = O + P + C + R - Z

• A/ 19,540 KHRm

• B/ 16,790 KHRm

• C/ 17,210 KHRm

• D/ 16,120 KHRm

Which of the statements are correct?

• A/ 1 only

• B /2 only

• C/ 3 only

• D/ None of the statements

Pheakdei runs a sole trader business selling office furniture. On 12th August

20X9, he employed his wife as a marketing assistant for the business and took a

desk from the storeroom for her to use in the office.

What is the double entry for this transaction?

• A- Dr Cost of sales Cr Non-current assets

• B- Dr Cost of sales Cr Drawings

• C- Dr Non-current assets Cr Cost of sales

• D- Dr Drawings Cr Cost of sales

What adjusted inventory figure should be recognised as an end-of-year

adjustment at 31st December 20X8?

• A/ 838,100,000 KHR

• B/ 853,900,000 KHR

• C/ 818,500,000 KHR

• D/ 834,300,000 KHR