Answered: AS 2 Inventories requires that lower of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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PAS 2 Inventories requires that lower of cost and net realizable value shall be applied

-On the basis of industry segment.

-On an item-by-item basis.

-To total inventories as a whole.

-To each class of inventory.

A newly admitted general partner is liable to creditors existing at the time of his admission and his liability is

-Loss before delivery of a specific thing which a partner had promised to contribute to the partnership.

-Loss before delivery of a specific thing where the partner promised to contribute only its use and enjoyment, reserving the ownership thereof.

-Loss after delivery of a specific thing where the partner contributed only its use and enjoyment, where such partner reserved the ownership thereof.

-Loss of a specific thing after its delivery to and acquisition of its ownership by the partnership from the partner who contributed the same.

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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