1. Raw materials and merchandise inventories are included in (a) Expenses (b) Fixed assets (c) Cash (d) Current assets (e) None of these 2. According to IAS 2, inventories are assets (a) Which exclude...

1. Raw materials and merchandise inventories are included in (a) Expenses (b) Fixed assets (c) Cash (d) Current assets (e) None of these

2. According to IAS 2, inventories are assets (a) Which exclude materials or supplies to be consumed in the production process or in the rendering of services (b) Consumed in the process of production only to protect the purchasing power of the items they comprise (c) Held for sale in the ordinary course of business (d) That describe the cumulative labor cost incurred to support the production process