Related Questions

An entity issues shares as consideration for the purchase of inventory. The shares were issued on 1st January, 2017. The inventory is eventually sold on 31st December, 2018. The value of the inventory on 1st January, 2017, was Rs. 8,00,000. This value was unchanged upto the date of sale. The sale proceed was Rs. 12,00,000. The shares issued have a market value of Rs. 9,00,000. Which of the following statement correctly describes the accounting treatment of this share based payment transaction?
A firm has inventory turnover of 6 and cost of goods sold is Rs. 7,50,000. With better inventory management, the inventory turnover is increased to 10. This would result in: