Argent need plz give its solution?

Question

5. Reporting Inventory at lower of cost or market value is a departure from the accounting principle of:

a. Full disclosure

b. Historical cost

c. Consistency

d. Conservatism

6. How many days notice is given to member for holding annual general meeting?

a. 60days

b. 30days

c. 40days

d. 21days

7. The term significant influence is

a. Ability to participate but not to control financial/management affair.

b. Ability to participate and to control financial/management affair.

c. Ability neither to control nor to participate in financial affair

d. None of the above

8. A plant has a capacity of making 20,000 units. Now the plant has been closed for annual repair and maintains. Engineers made an invoice of Rs.100,000. Now you are the finance manager of a company. What will be the possible accounting treatment you made?

a. Treated as subsequent expense and add it in the asset carrying amount.

b. Treated as normal expense and charged it against revenue

c. Treated as irrelevant c

Answer 1

5b - if inventories are stated potentially at market value if lower than cost then clearly they depart from the principle of historical cost

6d - don't know which country you're in but 21 days in UK

7b significant influence is exercised when the investor is actively involved and is influential in the direction of the investee through its participation in policy decisions

8b clearly this is a regular annual charge and should be written off as incurred