{"id":47615,"date":"2024-04-15T22:29:19","date_gmt":"2024-04-15T22:29:19","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=47615"},"modified":"2024-04-15T22:29:19","modified_gmt":"2024-04-15T22:29:19","slug":"as-per-as-2-this-standard-should-be-applied-in-accounting-for-inventories-other-than-1-work-in-progress-arising-under-constrution-contracts-including-directly-related-service-contracts-see-accounti","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/as-per-as-2-this-standard-should-be-applied-in-accounting-for-inventories-other-than-1-work-in-progress-arising-under-constrution-contracts-including-directly-related-service-contracts-see-accounti\/","title":{"rendered":"As per AS-2 this standard should be applied in accounting for inventories other than 1. work-in-progress arising under constrution contracts, including directly related service contracts (see Accounting Standard (AS)-7, construction contracts). 2. work-in-progress arising in the ordinary course of business of service providers. 3. shares, debentures and other financial instruments held as stock-in-trade. 4. producer&#8217;s inventories of livestock, agricultural and forest products and mineral oils, ores and gases to the extent that they are measured at net realisable value in accordance with well established practices in those industries. 5. work-in-progress arising in the special course of business of service providers. Select the correct answer:"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a97f98d63f2d\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"true\">\r\n                    1, 2 and 3                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    1, 2, 3 and 4                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    2, 3, 4 and 5                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    3, 4 and 5                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>A. 1, 2 and 3<\/strong><\/p>\n<p>AS-2 is an accounting standard that prescribes the accounting treatment of inventories. It applies to all inventories except for the following:<\/p>\n<ul>\n<li>Work-in-progress arising under construction contracts, including directly related service contracts (see Accounting Standard (AS)-7, construction contracts).<\/li>\n<li>Work-in-progress arising in the ordinary course <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> of business of service providers.<\/li>\n<li>Shares, debentures and other financial instruments held as stock-in-trade.<\/li>\n<\/ul>\n<p>The reason for these exceptions is that these items are not considered to be inventories in the ordinary sense. Work-in-progress arising under construction contracts is considered to be an asset of the contractor, and is accounted for in accordance with AS-7. Work-in-progress arising in the ordinary course of business of service providers is considered to be an expense of the service provider, and is <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> not separately accounted for. Shares, debentures and other financial instruments held as stock-in-trade are considered to be investments, and are accounted for in accordance with AS-11, Accounting for Investments.<\/p>\n<p>The remaining options are all considered to be inventories in the ordinary sense, and are therefore subject to the requirements of AS-2.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>As per AS-2 this standard should be applied in accounting for inventories other than 1. work-in-progress arising under constrution contracts, including directly related service contracts (see Accounting Standard (AS)-7, construction contracts). 2. work-in-progress arising in the ordinary course of business of service providers. 3. shares, debentures and other financial instruments held as stock-in-trade. 4. producer&#039;s inventories of livestock, agricultural and forest products and mineral oils, ores and gases to the extent that they are measured at net realisable value in accordance with well established practices in those industries. 5. work-in-progress arising in the special course of business of service providers. 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