Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

The draft financial statements for a business showed inventory with a value of $550000. This figure included damaged items that had originally cost $50000. They could be sold for $15000 if $5000 is spent on repairs. What is the correct value for inventory?

  • A$490000
  • B$500000
  • C$510000
  • D$515000

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