MCQ Practice

Recent developments have made much of a company‘s inventory obsolete. This obsolete inventory should be?

Subject: AccountingTopic: Accounting
A

Written down to zero or its scrap value

B

Shown in the Balance Sheet at its replacement cost

C

Shown in the Balance Sheet at cost, but classified as a non-current asset

D

Carried in the accounting records at cost until it is sold

Correct Answer: A