Closing stock is valued at: MCQ with Answer and Explanation

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Closing stock is valued at:

A. Cost Price

B. Cost Price or Market Value, whichever is lower

C. Cost Price or Market Value, whichever is higher

D. Market (Net Realizable) Value

Answer: Option B

Solution (By JKSSB Mock Tests)

Based on the principle of conservatism (prudence), inventory is valued at Cost or Net Realizable Value (Market Value), whichever is less.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Practice More Accountancy and Book Keeping Questions

Question #1

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Under FEMA, current account transactions are:

A. Only allowed for exporters

B. Generally permitted, subject to certain restrictions

C. Prohibited

D. Only allowed for government

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Correct Answer: Option B

Explanation:
Current account transactions are generally free unless specifically restricted.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

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S1: The Profit and Loss Account shows the financial position of the business. S2: The Balance Sheet shows the financial position of the business. Which statement(s) is/are correct?

A. Both S1 and S2

B. Neither S1 nor S2

C. S1 only

D. S2 only

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Correct Answer: Option D

Explanation:
The Profit and Loss Account shows the financial performance (profit or loss) over a period. The Balance Sheet shows the financial position (assets and liabilities) at a specific point in time.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping