Fundamental qualitative characteristics include

• A.

  relevance and comparability.

• B.

  representational faithfulness and timeliness.

• C.

  relevance and representational faithfulness.

• D.

  verifiability and relevance.

At the end of its accounting year, Pierce Products Inc.'s physical inventory count indicated that 25,000 units of inventory, costing $34.75 each, were on hand. Included in that count were 1,500 units with a net realizable value of $19.00 each. The company's perpetual inventory system reported a balance of $868,750. The required year-end adjusting entry for inventory is

• A.

  debit Inventory and credit Cost of goods sold, $845,125.

• B.

  debit Inventory and credit Gain on Inventory Due to Count, $4,500.

• C.

  No adjusting entry is required.

• D.

  debit Cost of Goods Sold and credit Inventory, $23,625.

According to IFRS 13, the highest quality valuation technique for determining the fair value of an asset is one based on

• A.

  inputs other than quoted prices that are observable for the asset or liability directly.

• B.

  observable inputs that reflect quoted prices from identical assets, in active markets

• C.

  unobservable inputs

• D.

  any inputs that are based on professional judgment, applied rationally.