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9. Under IFRS, which of the following methods is not inventory? acceptable for the valuation of a. FIFO b. LIFO c. Average cost Specific identification. 10. Merchandise purchased for resale Freight-in Freight-out Purchase returns Purchase discounts $350,000 10,000 20,000 15,000 10,000 The cost of goods purchased is: a,$355,000. b.$335,000. С.$355,000. d.$380,000. e. None of the above In preparing its August 31, 2012 bank reconciliation, Bing Corp. has available the following information 11. Balance per bank statement, 8/31/12 Deposit in transit, 8/31/12 Return of customers check for insufficient funds, 8/30/12 $19,650 4,000 600 2,750 100 -Outstanding checks, 8/31/12 Bank service charges for August At August 31, 2012, Bings correct cash balance is a, $19,800. b. $19,200. c. $19,100. d. $19,900. e. none of the above 12. The net assets of a business are equal to a. current assets minus current liabilities. b. total assets minus total liabilities c. total assets minus total stockholders equity None of these. d.
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9. The correct option is b. LIFO. LIFO method is not allowed under IFRS for inventory valuation. FIFO, specific identification, and average cost method are allowed under IFRS for inventory valuation. 10. Cost of goods purchased Merchandise purchased for resale + Freight-in-Purchase returns-Purchase discounts S350,000+S10,000 $15,000- $10,000 $335,000 Thus, the correct option is b. S335,000. Correct cash balance at August 31, 2012 Balance per bank statement, 8/31/12+Deposit in transit Outstanding checks S19,650+S4,000- $2,750 - S20,900 Thus, the correct option is e. none of the above. 12. The correct option is b. total assets minus total labilities. The difference between total assets and total liabilities is net assets. Total liabilities are deducted from total assets to calculate the net assets. Net assets are and equity are same thing.

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