7. Discuss some of the problems met in valuing inventories.
8. In the case of a manufacturing concern, discuss the valuation of the following inventories: (a) Finished goods. (b) Raw materials. (c) Goods in process. (d) Uncompleted contracts. (e) Scrap.
9. State the two rules to be observed when taking a physical inventory and discuss their application.
10. How may a perpetual inventory be kept?
11. Is a physical inventory necessary when a perpetual inventory is kept?
Chapter XIV
1. What is the usual basis upon which temporary investments should be valued?
2. What are the advantages in the use of the “Reserve for Investment Fluctuations” account?
3. Explain the method of valuing stock rights.
4. How are temporary investment costs handled on the books?