Accounting Multiple Choice Question – 12 September 2026

For the following circumstance described in respect of inventory, select which financial statement assertion would be affected.

• Inventory sold by the end of the period has been included in inventory.

Select ONE answer:

1. Net Realisable Value
2. Completeness
3. Accuracy, valuation and allocation
4. Cut-off

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – The cut-off assertion is affected by including inventory sold in inventory at the end of the period (i.e., cut-off is incorrect). Where damaged items have not been written down to NRV, then the accuracy, valuation and allocation assertion is directly affected (i.e., inventory is incorrectly valued).

This work is licensed under a Creative Commons Attribution 4.0 International License.