8.Upon initial recognition, which of the following would NOT be included in the cost of factory equipment acquired from an overseas supplier?

a.Costs to test the equipment's operation after installation but prior to first-time use.

b.Cost of transit insurance while the equipment is being shipped from overseas.

c.Import duty d.Cost to rewire the equipment to Australian standard electricity supply voltage.

e.None of these - they would all be included in the initial cost of the equipment.

9.Assuming realisation costs cannot be determined, which of the following situations would require an item of inventory to be written down to its realisable value?

The item is expected to be sold at cost. The item is expected to be sold at a reduced selling price. The item is expected to be sold at a price less than its carrying amount. The item is expected to be sold at a reduced mark-up. All of these alternatives would require inventory to be written down to its realisable value.

10.Which of the following statements in relation to the line disclosure Trade and other receivables is incorrect?

a.None - all of these statements are correct.

b.Trade and other receivables represent the amount expected to be received from customers and other receivables.

c.Trade and other receivables are always a current asset. d.Trade and other receivables are subject to measurement uncertainty.

e.Trade and other receivables are a financial asset.