What this practice covers
These questions are drawn from past CIE 0452 Accounting papers and filtered to valuation of inventory. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
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What examiners see students get wrong here
These are the errors that cost marks on valuation of inventory, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Valuing inventory at selling price.
- Applying the lower of cost and net realisable value to the total instead of to each line.
- Forgetting to deduct the costs of selling when calculating net realisable value.
- Including closing inventory in the trial balance.
- Valuing goods taken by the owner at selling price.
- Stating the effect on profit but not on the current assets.
- Forgetting that this year's error reverses into next year's profit.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Valuation of inventory revision notes.