Cost Accounting Standards Quiz 1 (6 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. AS 2 states that the costs of inventories of items that are not ordinarily interchangable should be valued at

Correct Answer: C) Their specific individual costs.

2. Which of the following is NOT the outcome of a biological transformation according to IAS 41?

Correct Answer: C) Harvest.

3. Accounting standard 2 by the ICAI defines inventory as

Correct Answer: C) Assets held for sale in the ordinary course of business.

4. At what amount is a biological asset measured on initial recognition in accordance with IAS 41 Agriculture?

Correct Answer: A) Fair value less estimated costs to sell.

5. Accounting Standard 1 is

Correct Answer: A) Mandatory.

6. How is a gain or loss arising on a biological asset recognised in accordance with IAS 41?

Correct Answer: A) Included in profit or loss for the year.