MCQINVENTORY VALUATION

X ltd. has furnished the following details Date Particulars Units Rate (Rs.) 1 O.S. 100 1.75 5 Purchased 150 1.5 9 Issued 200 10 Purchased 300 1.6 15 Issued 250 Closing stock as Per FIFO

a.Rs.170. c. Rs.150 b.Rs.160 d. Rs.180

X ltd. has furnished the following details Date Particulars Units Rate (Rs.) 1 O.S. 100 1.75 5 Purchased 150 1.5 9 Issued 200 10 Purchased 300 1.6 15 Issued 250 Closing stock as Per FIFO

a.Rs.170. c. Rs.150 b.Rs.160 d. Rs.180

X ltd. has furnished the following details Date Particulars Units Rate (Rs.) 1 O.S. 100 1.75 5 Purchased 150 1.5 9 Issued 200 10 Purchased 300 1.6 15 Issued 250 Closing stock as Per LIFO

a.Rs.172.50 c. Rs.150 b.Rs.225 d. Rs.167.50

X ltd. has furnished the following details Date Particulars Units Rate (Rs.) 1 O.S. 100 1.75 5 Purchased 150 1.5 9 Issued 200 10 Purchased 300 1.6 15 Issued 250 Closing stock as Per LIFO

a.Rs.172.50 c. Rs.150 b.Rs.225 d. Rs.167.50

50X1.75= 87.50 50X1.60=80=167.50

a. Consistencyb. Conservatism c. Matchingd. Materialism

Inventory is valued at lower of cost or Net Realisable value as per the Accounting Principle of

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a. Consistencyb. Conservatism c. Matchingd. Materialism

Inventory is valued at lower of cost or Net Realisable value as per the Accounting Principle of

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a. Rs.2500b. Rs.1500c. Rs.1800d. Rs.1600

If Sales are Rs.2000 and the rate of Profit on Cost of Goods Sold is 25% then Cost of Goods sold would be

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a. Rs.2500b. Rs.1500c. Rs.1800d. Rs.1600

If Sales are Rs.2000 and the rate of Profit on Cost of Goods Sold is 25% then Cost of Goods sold would be

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a. Rs. 210000b. Rs. 220000c. Rs. 200000d. Rs. 205000

Sales Rs.400000Opening Inventory Rs. 20000Purchase Rs.210000Purchase Return Rs. 5000Closing Inventory Rs. 20000The Cost of Goods Sold would be

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a. Rs. 210000b. Rs. 220000c. Rs. 200000d. Rs. 205000

Sales Rs.400000Opening Inventory Rs. 20000Purchase Rs.210000Purchase Return Rs. 5000Closing Inventory Rs. 20000The Cost of Goods Sold would be

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a. LIFOb. FIFOc. Weighted Average d. None of the above.

Which Method of Inventory Valuation best matches the Cost of Goods Sold and Replacement Cost

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a. LIFOb. FIFOc. Weighted Average d. None of the above.

Which Method of Inventory Valuation best matches the Cost of Goods Sold and Replacement Cost

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a. Of Rising Prices b. Of Declining Pricesc. Constant Prices d. None of the above

If stock at the end is more by FIFO method than LIFO method than it is

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a. Of Rising Prices b. Of Declining Pricesc. Constant Prices d. None of the above

If stock at the end is more by FIFO method than LIFO method than it is

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a. Rs. 100000b. Rs. 200000

c. Rs. 275000d. Rs. 225000

Purchases Rs. 400000,Operning Stock Rs. 100000,Sales Rs.300000. Selling Price is Cost Plus 1/3rd of Cost The Value of Closing Inventory would be

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a. Rs. 100000b. Rs. 200000

c. Rs. 275000d. Rs. 225000

Purchases Rs. 400000,Operning Stock Rs. 100000,Sales Rs.300000. Selling Price is Cost Plus 1/3rd of Cost The Value of Closing Inventory would be

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If profit is 1/3rd of COGS,

It is 1/4th of Sales CS=OS+P-COGS

a. Rs. 425000b. Rs.275000c. Rs.500000d. None of the above

Closing Stock Rs. 225000Sales Rs.300000Opening Stock Rs.100000Profit is 25% of Sales Purchases would be

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a. Rs. 425000b. Rs.275000c. Rs.500000d. None of the above

Closing Stock Rs. 225000Sales Rs.300000Opening Stock Rs.100000Profit is 25% of Sales Purchases would be

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If profit is 1/4th of Sales,

P=COGS+CS-OS

275000+22500-100000

P=Rs.400000

a. FIFO stock is of less Value during inflation.

b. LIFO stock is of more Value during inflation .

c. FIFO stock is of more Value during falling prices .

d. None of the above

Mark the True Statement

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a. FIFO stock is of less Value during inflation.

b. LIFO stock is of more Value during inflation .

c. FIFO stock is of more Value during falling prices .

d. None of the above

Mark the True Statement

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a. Of Rising Prices b. Of Declining Pricesc. Constant Prices d. None of the above

If Stock at the end is more by LIFO method than FIFO method than it is

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a. Of Rising Prices b. Of Declining Pricesc. Constant Prices d. None of the above

If Stock at the end is more by LIFO method than FIFO method than it is

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a. FIFOb. LIFOc. Weighted Average Methodd. Both a & c

Under inflationary conditions which of the following method gives more Value to Cost Of Goods Sold

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a. FIFOb. LIFOc. Weighted Average Methodd. Both a & c

Under inflationary conditions which of the following method gives more Value to Cost Of Goods Sold

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a. Sales - Closing Stock + Purchaseb. Sales-Closing Stock +Cost of Goods sold c. Sales +Closing Stock –Purchasesd. Sales – Cost of Goods Sold +Closing Stock

Opening Stock is equal to

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a. Sales - Closing Stock + Purchaseb. Sales-Closing Stock +Cost of Goods sold c. Sales +Closing Stock –Purchasesd. Sales – Cost of Goods Sold +Closing Stock

Opening Stock is equal to

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a. Both would Decreaseb. Both would Increasec. Increase in GP & Decrease in CA d. Decrease in GP and Increase In CA

If Closing Stock is overstated thanGross Profit & Current Assets

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a. Both would Decreaseb. Both would Increasec. Increase in GP & Decrease in CA d. Decrease in GP and Increase In CA

If Closing Stock is overstated thanGross Profit & Current Assets

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a. Net incomeb. Cash Flow Statementc. Tax Liability d. Both a & b

Inventory valuation does not effect

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a. Net incomeb. Cash Flow Statementc. Tax Liability d. Both a & b

Inventory valuation does not effect

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a. FIFOb. LIFOc. Weighted Average Methodd. Specific Identification Method

Which method of stock valuationMatches current cost with currentrevenue

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a. FIFOb. LIFOc. Weighted Average Methodd. Specific Identification Method

Which method of stock valuationMatches current cost with currentrevenue

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a.Current year Profit would be Understated b. Current year Profit would be Overstated c. Next year Profit would be Understated d. Both b & c

If Closing stock is under stated than

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a.Current year Profit would be Understated b. Current year Profit would be Overstated c. Next year Profit would be Understated d. Both b & c

If Closing stock is under stated than

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a. Cost b. Net Realisable Valuec. Replacement Costd. Current Cost

Damaged inventory should be valued at

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a. Cost b. Net Realisable Valuec. Replacement Costd. Current Cost

Damaged inventory should be valued at

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a. Opening stock +Purchases –Loss of stock +Closing Stock b. Opening stock +Purchases +Loss of stock +Closing Stockc. Sales – Closing stock –Opening stock d. Purchase +Opening Stock –Closing Stock

Cost of Goods sold is equal to

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a. Opening stock +Purchases –Loss of stock +Closing Stock b. Opening stock +Purchases +Loss of stock +Closing Stockc. Sales – Closing stock –Opening stock d. Purchase +Opening Stock –Closing Stock

Cost of Goods sold is equal to

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a.Cost or Purchase Price which ever is Lower

b. Cost or Market Cost which ever is Lowerc. Cost or Replacement Cost which ever is

Lowerd.None of the above

Closing Stock is to be valued at

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a.Cost or Purchase Price which ever is Lower

b. Cost or Market Cost which ever is Lowerc. Cost or Replacement Cost which ever is

Lowerd.None of the above

Closing Stock is to be valued at

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a. Rs. 40000 b. Rs. 30000

c. Rs. 22500d. Rs. 20000

Total Cost of Goods available for sale was Rs.120000.Total Sales were Rs.120000.If Gross Profit rate is 1/3rd ofCost than Closing Stock would

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a. Rs. 40000 b. Rs. 30000

c. Rs. 22500d. Rs. 20000

Total Cost of Goods available for sale was Rs.120000.Total Sales were Rs.120000.If Gross Profit rate is 1/3rd of Cost than Closing Stock would

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I/3rd on cost means 1/4th on Sales COGS=Rs.90000CS=120000-90000=Rs.30000

a. Opening Stock is an Asset in Balance Sheet.b. Closing Stock is an Asset in Balance Sheet.c. Closing Stock is equal to Purchases – COGS.d. Opening Stock is equal to COGS +Purchases.

Mark the untrue Statement

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a. Opening Stock is an Asset in Balance Sheet.b. Closing Stock is an Asset in Balance Sheet.c. Closing Stock is equal to Purchases – COGS.d. Opening Stock is equal to COGS +Purchases.

Mark the untrue Statement

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Sales Rs. 80000Purchases Rs.100000Opening Stock Rs. 20000Profit Margin 25% The Closing Stock would be

a. Rs.60000b. Rs.80000c. Rs. 36000d. Rs.40000

Sales Rs. 80000Purchases Rs.100000Opening Stock Rs. 20000Profit Margin 25% The Closing Stock would be

a. Rs.60000b. Rs.80000c. Rs. 36000d. Rs.40000

COGS=75% of 80000= Rs.60000COGS=OS+P-CS20000+100000-60000

=60000

Sales Rs. 200000Purchases Rs.160000Opening Stock Rs. 80000Profit Margin 1/3rd on COGSLoss of Stock Rs.30000The Closing Stock would be

a. Rs.10000b. Rs.40000c. Rs. 36000d. Rs.60000

Sales Rs. 200000Purchases Rs.160000Opening Stock Rs. 80000Profit Margin 1/3rd on COGSLoss of Stock Rs.30000The Closing Stock would be

a. Rs.10000b. Rs.40000c. Rs. 36000d. Rs.60000

If profit is 1/3rd of COGS,It is 1/4th of Sales CS=OS+P-LOSS- COGS