F7 (FR) – Chapter 14 – PART B – CBE MCQs – ACCA

These are ACCA F7 (FR) Financial Reporting MCQs for Part-B of the Syllabus “Accounting for transactions in financial statements”.

These multiple-choice questions (MCQs) are designed to help ACCA F7 students to better understand the exam format. We aim to instill in students the habit of practicing online for their CBE exams. By doing so, students can reduce exam stress and prepare more effectively.

Please note:

  • Students should not attempt these MCQs until they have finished the entire chapter.
  • All questions are compulsory, so please do not skip any.

We hope that these MCQs will be a valuable resource for students preparing for the ACCA F7 (FR) exam.

INFORMATION ABOUT THESE CBE MCQs Test/Quiz

Course:ACCA – Association of Chartered Certified Accountants
Fundamental Level:Applied Skills
Subject:Financial Reporting
Paper:F7 – FR
Chapter and Topic14 – Inventories and biological assets
Syllabus Area:B – “Accounting for transactions in financial statements”
Questions Type:CBE MCQs
Exam Section:Section A

Syllabus Area

These Multiple Choice Questions (MCQs) cover the Syllabus Area Part-B of the Syllabus; “Accounting for transactions in financial statements” of ACCA F7 (FR) Financial Reporting Module.

Time

These MCQs are not time-bound. Take your time and solve them without stress. Pay proper attention and focus. Do not rush or hesitate

Result

Students will get their F7 CBE MCQs Test results after they finish the entire test. They will also be able to see the correct and incorrect answers, as well as explanations for the incorrect questions.

Types of Questions

MCQs: Choose one from the given options.
Multiple choice: Choose all those answers which seem correct/ or incorrect to you, as per the requirement of the question. Keep your eye on the wording “(select all those which are correct/ or incorrect)“.
Drop-down: Select from the list provided.
Type numbers: Type your answer in numbers as per the requirement of the question.

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F7 (FR) - Chapter 14 - Part B - MCQs - Inventories and biological assets

Course: ACCA - Association of Chartered Certified Accountants
Subject:
F7 (FR) - Financial Reporting
Syllabus Area: B - Accounting for transactions in financial statements
Chapter: 14 - Inventories and biological assets
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit

INSTRUCTIONS

  1. If you are using mobile, turn on the mobile rotation and solve the MCQs on wide screen for better experience.

REQUEST

  1. Please rate the quiz and give us feedback once you completed the quiz.
  2. Share with ACCA students on social media such as, Facebook Groups, Whatsapp, Telegram, etc.

1 / 9

Which of the following is NOT the outcome of a biological transformation according to IAS 41?

2 / 9

Which of the following statements about IAS 2 Inventories are correct?

  1. Production overheads should be included in cost on the basis of a company's actual level of activity in the period.
  2. In arriving at the net realisable value of inventories, settlement discounts must be deducted from the expected selling price.
  3. In arriving at the cost of inventories, FIFO, LIFO and weighted average cost formulas are acceptable.
  4. It is permitted to value finished goods inventories at materials plus labour cost only, without adding production overheads.

3 / 9

How is a gain or loss arising on a biological asset recognised in accordance with IAS 41?

4 / 9

Caminas Co has the following products in inventory at the year end.

Product Quantity Cost Selling price Selling cost
A 1,000 $40 $55 $8
B 2,500 $15 $25 $4
C 800 $23 $27 $5

At what amount should total inventory be stated in the statement of financial position?

5 / 9

t 31 March 20X7 Tentacle Ltd had 12,000 units of product W32 in inventory, included at cost of $6 per unit. During April and May 20X7 units of W32 were being sold at a price of $5.40 each, with sales staff receiving a 15% commission on the sales price of the product.

At what amount should inventory of product W32 be recognised in the financial statements of Tentacle Ltd as at 31 March 20X7? $_______

Note. You are not required to put $ sign nor any coma. (e.g. 1000)

6 / 9

At what amount is a biological asset measured on initial recognition in accordance with IAS 41 Agriculture?

7 / 9

Isaac Ltd is a company which buys agricultural produce from wholesale suppliers for retail to the general public. It is preparing its financial statements for the year ending 30 September 20X4 and is considering its closing inventory.

In addition to IAS 2 Inventories, which of the following accounting standards may be relevant to determining the figure to be included in its financial statements for closing inventories?

8 / 9

In preparing financial statements for the year ended 31 March 20X6, the inventory count was carried out on 4 April 20X6. The value of inventory counted was $36 million. Between 31 March and 4 April goods with a cost of $2.7 million were received into inventory and sales of $7.8 million were made at a mark-up on cost of 30%.

Using the drop down box. select at what amount inventory should be stated in the statement of financial position as at 31 March 20X6?

9 / 9

In which of the following situations is the net realisable value of an item of inventory likely to be lower than its cost?

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