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Old 30th September 2013, 01:57 AM   #1 (permalink)
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Accounting Questions, please help!

1. when the inventory cost is lower than Net Realizable Value, the invetory should be reported at:
a. market price of inventory
b. selling price of inventory
c. replacement price of inventory
d. selling price of inventory less cost to sell.


2. Which of the following items should be accounted for as a capital expenditure?
a. Taxes paid in conjunction with the purchase of office equipment
b. Costs incurred to repair leaks in the building roof


3. Would you consider remodelling of a building a capital expenditure or an expense?


4. A company adds soil to stabilize the foundation of the land before constructing a building on top of it. should the cost go to the land or to the building?



anyone can help me out? My test is on wed and would seriously appreciate any help.
thank you .

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Last edited by blacktoast94; 30th September 2013 at 01:58 AM.
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