POA theory CH9

Question 1

inventory

Answer 1

goods brought by business to sell to their customers

Question 2

information to consider when buying inventory :
- accounting information
- non-accounting information

Answer 2

-cost of inventory
-nature of product
-types of storage
-customer’s preference

Question 3

s

Question 4

basis of which inventory should be valued

Answer 4

inventory is valued at the lower of cost and net realisable value