ADMS 1500 Study Guide - Quiz Guide: Historical Cost, Inventory Turnover, Asset Turnover
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2: in the balance sheet assets are presented: a) b) c) d) e) most highly liquid, through to least liquid; in order of acquisition; at appraised values; least liquid through to most highly liquid; none of the above. 5: long-term assets should be reported in the balance sheet at: a) b) c) d) e) historic cost, less an allowance for depreciation; realizable value; replacement value; marketable value; all, or none, of the above. 6: freda"s flowers ltd. has inventory of flowers on hand as at 24th december that had cost ,000. Due to closing for the christmas holidays it is unlikely that these will be fit for sale when they reopen in january. The balance sheet valuation of inventory of flowers should be: a) b) c) d) e) ,000, based on net realizable value; nil, based on net realizable value; , as a compromise between cost and realizable value; nil, based on the first-in-first-out inventory flow model.