As per AS-2 valuation of inventories, inventories are assets
1. held for sale in the ordinary course of business.
2. held for sale in the special course of business.
3. in the process of production for such sale.
4. in the form of materials or supplies to be consumed in the production processor or in the rendering of services.
5. in the process of services for such sale.
Select the correct answer:
A. 1, 2, 3 and 4
B. 1, 4 and 5
C. 1, 3 and 4
D. 2, 4 and 5
Answer: Option C
Related Questions on Accounting
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
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