0452.4.5.01 — understand the basis of the valuation of inventory at the lower of cost and net realisable value: past paper questions
Real questions on 0452.4.5.01 — understand the basis of the valuation of inventory at the lower of cost and net realisable value
The newest 20 of 20 written questions. Open one to see it on the real paper.
- 0452/23 · October/November 2025 · Q3c(i)[1]
State why the inventory was included at a reduced value. (c) (i)
See it on the paper → - 0452/11 · May/June 2024 · Q18[1]
Why is inventory valued at the lower of cost and net realisable value?
See it on the paper → - 0452/21 · May/June 2024 · Q4e[2]
Suggest two problems which may be caused by Ahmed’s lower rate of inventory turnover.
See it on the paper → - 0452/21 · October/November 2023 · Q3d(i)[1]
State how: the prudence principle is applied to the valuation of Logan’s inventory
See it on the paper → - 0452/22 · February/March 2023 · Q4d[2]
Explain how this limitation may influence Adya’s decision about whether or not to reduce her selling price.
See it on the paper → - 0452/23 · October/November 2022 · Q2d[2]
Prepare the inventory account at 30 September 2022. Balance the account and bring down the balance on 1 October 2022. Rasheed Inventory account Date Details $ Date Details $
See it on the paper → - 0452/12 · May/June 2022 · Q15[1]
How much was the provision for doubtful debts on 1 January 2022?
See it on the paper → - 0452/21 · May/June 2022 · Q4b[5]
Advise Ekua whether she should purchase the additional inventory. Justify your answer by providing two advantages and two disadvantages.
See it on the paper → - 0452/22 · May/June 2022 · Q4a(i)[6]
Calculate the value of Nala’s inventory at 28 February 2022.
See it on the paper → - 0452/23 · May/June 2022 · Q4a(i)[6]
Calculate the value of Nala’s inventory at 28 February 2022.
See it on the paper → - 0452/23 · May/June 2022 · Q4a(ii)[1]
State the accounting principle used to value inventory.
See it on the paper → - 0452/21 · October/November 2021 · Q1d[5]
Discuss the implications of Shiv valuing the inventory on 31 August 2021 at selling price.
See it on the paper → - 0452/23 · October/November 2021 · Q1d[5]
Discuss the implications of Shiv valuing the inventory on 31 August 2021 at selling price. PLEASE TURN OVER
See it on the paper → - 0452/21 · October/November 2020 · Q4a[2]
Calculate the correct value of inventory at 30 September 2020.
See it on the paper → - 0452/21 · May/June 2020 · Q4(a)[4]
Calculate the total value of Rani’s inventory at 31 March 2020.
See it on the paper → - 0452/21 · May/June 2020 · Q4(b)[2]
Explain to Rani how the value of the inventory of item D affected the profit for the year ended 31 March 2020.
See it on the paper → - 0452/21 · May/June 2020 · Q4(c)[5]
Advise Rani whether or not she should stop purchasing item D to avoid having obsolete inventory in the future. Justify your answer by providing advantages and disadvantages.
See it on the paper → - 0452/23 · October/November 2019 · Q4e(i)[1]
State the basis on which Ishaq should value his inventory.
See it on the paper → - 0452/23 · October/November 2019 · Q4f[4]
Complete the table by placing a tick (3) in the correct column to indicate the effect of Ishaq undervaluing his inventory at 31 July 2019. overstated understated gross profit for the year ended 31 July 2019 current assets at 31 July 2019 cost of sales for the year ending 31 July 2020 profit for the year ending 31 July...
See it on the paper → - 0452/23 · May/June 2019 · Q4e[2]
Suggest two reasons why Shen always values his inventory at the lower of cost and net realisable value. After the preparation of the income statement for the year ended 31 January 2019 Shen discovered that the inventory at 31 January 2019 had been overstated. REQUIRED
See it on the paper →
What examiners said
Many candidates did not understand how the gap between the end of a financial year and the date the financial statements are available can be a limiting factor. The question required candidates to explain how this limitation may influence a trader’s decision about whether or not to reduce selling price. The trader would prefer to be aware of the sales during the ‘gap’ and the level of inventory to...
— Examiner report, February/March 2023, 0452/22 Q4(d) (Cambridge)
At the end of the financial year the closing inventory is transferred from the income statement to the debit of the inventory account, which is then balanced, and the balance is brought down on the debit side to start the next financial year. Many candidates included extraneous items from the petty cash book.
— Examiner report, October/November 2022, 0452/23 Q2(d) (Cambridge)
Candidates were required to advice a trader whether to purchase a large quantity of inventory at a reduced price. At least one advantage and one disadvantage of the proposal should have been provided together with a clear recommendation. An increase in the amount of inventory does not necessarily lead to an increase in sales. The sales may increase because of the additional advertising and/or the...
— Examiner report, May/June 2022, 0452/21 Q4(b) (Cambridge)
Past papers, syllabus and examiner reports © UCLES (Cambridge University Press & Assessment). Questions are matched to topics from the official syllabus. AssessPro is independent and not endorsed by Cambridge.