Reference no: EM132745007

Problem 1: Which of the following is not a required disclosure for inventories in the financial statements?

Group of answer choices

A. The carrying amount of inventories pledged as collateral security
B. The amount of inventory write-downs during the period
C. The circumstances that lead to the write-downs of inventories
D. The carrying amount o f inventories per major classification

Problem 2: Which of the following statements is not true?

Group of answer choices

A. Inventory at the end of the period reduces cost of sales for the period.
B. Purchases returns for the period reduces cost of sales.
C. Inventory at the beginning reduces cost of sales.
D. Inventory at the end of the period is equivalent to unexpired expense.