1.Which of the following items is least likely to be included in inventory cost?

a.Costs incurred as normal waste of materials

b.Production related storage costs

c.Transportation costs of shipping goods sold to customers

2.A company issues $ million of bonds at face value. At the time of issue the company will record a

a.Cash inflow from investing activities

b.Cash inflow from operating activities

c.Cash inflow from financing activities

3.Interest paid is considered an operating cash outflow

a.Under GAAP but may also be considered an investing outflow under IFRS

b.Under IFRS but may also be considered an investing outflow under GAAP

c.Under both GAAP and IFRS

d.Under GAAP but may also be considered a financing outflow under IFRS