11/8/23, 7:28 PM Assessment 4
QUIZ
Question 1
Answer saved
Marked out of 2
MULTIPLE CHOICE QUESTION ASSIGNMENT
Answer the following multiple choice questions. Indicate your choice by selecting
only one option from the four options given for each question answered.
Use the following information to answer question 1 and 2:
Air Fry Ltd is a manufacturer of specialised pots that reduces the time it takes to cook a
meal, resulting in electricity consumption also being lower. During March 2022, however, a
competitor introduced a better product on the market, thereby reducing the demand for
Air Fry‘s products. Air Fry Ltd immediately decreased their selling price from R500 per pot
to R300 per pot to try and compensate for this. This selling price reduction, however, did not
have any effect on the going concern of the company. On 28 February 2022, 2 000 pots were
on hands. The previous accountant was not certain whether this inventory should be written
down to the selling price of R300 per pot, as it is lower than the cost of R350 per pot. The
financial statements were authorised for issue during April 2022.
REQUIRED:
Question 1:
Which one of the following statements are correct based on the information provided above?
1.
The event is indicative of circumstances that occurred during the financial period
and thus this represents an adjusting event.
2. Air Fry Ltd will not have to adjust their financial statements as this event occurred
after the reporting date, however, a disclosure of the nature of the event is required.
3. Since the event occurred between the reporting date and the date the financial
statements were authorised for issue, this is an adjusting event.
4.
Air Fry Ltd will not have to adjust their financial statements as this event occurred
after the reporting date and no disclosure thereof is required.
Clear my choice
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, 11/8/23, 7:28 PM Assessment 4
Question 2
Answer saved
Marked out of 2
Question 2:
If it is assumed that Air Fry Ltd has to adjust their financial statements, the details of the
adjustment will be as follows:
1. A write down of inventory with an amount of R200 000
2.
A write down of inventory with an amount of R50 000
3. A write down of inventory with an amount of R400 000
4. A write down of inventory with an amount of R100 000
Clear my choice
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QUIZ
Question 1
Answer saved
Marked out of 2
MULTIPLE CHOICE QUESTION ASSIGNMENT
Answer the following multiple choice questions. Indicate your choice by selecting
only one option from the four options given for each question answered.
Use the following information to answer question 1 and 2:
Air Fry Ltd is a manufacturer of specialised pots that reduces the time it takes to cook a
meal, resulting in electricity consumption also being lower. During March 2022, however, a
competitor introduced a better product on the market, thereby reducing the demand for
Air Fry‘s products. Air Fry Ltd immediately decreased their selling price from R500 per pot
to R300 per pot to try and compensate for this. This selling price reduction, however, did not
have any effect on the going concern of the company. On 28 February 2022, 2 000 pots were
on hands. The previous accountant was not certain whether this inventory should be written
down to the selling price of R300 per pot, as it is lower than the cost of R350 per pot. The
financial statements were authorised for issue during April 2022.
REQUIRED:
Question 1:
Which one of the following statements are correct based on the information provided above?
1.
The event is indicative of circumstances that occurred during the financial period
and thus this represents an adjusting event.
2. Air Fry Ltd will not have to adjust their financial statements as this event occurred
after the reporting date, however, a disclosure of the nature of the event is required.
3. Since the event occurred between the reporting date and the date the financial
statements were authorised for issue, this is an adjusting event.
4.
Air Fry Ltd will not have to adjust their financial statements as this event occurred
after the reporting date and no disclosure thereof is required.
Clear my choice
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php 1/10
, 11/8/23, 7:28 PM Assessment 4
Question 2
Answer saved
Marked out of 2
Question 2:
If it is assumed that Air Fry Ltd has to adjust their financial statements, the details of the
adjustment will be as follows:
1. A write down of inventory with an amount of R200 000
2.
A write down of inventory with an amount of R50 000
3. A write down of inventory with an amount of R400 000
4. A write down of inventory with an amount of R100 000
Clear my choice
https://mymodules.dtls.unisa.ac.za/mod/quiz/attempt.php 2/10
