At the end of the financial period the cost of an entity's inventory on hand is $25 500.The net realisable value of the inventory is deemed to be $28 000.What value for inventory must be shown on the entity's balance sheet for the reporting period?
A) $28 000
B) $25 500
C) None of the above.
D) $2 500

Question

Quizplus · Accepted Answer

The net realisable value of the inventory is higher than the cost, so the inventory must be shown on the balance sheet at its net realisable value of $28,000.

At the End of the Financial Period the Cost of an Entity's