Which inventory valuation method is not permitted under Ind AS 2? MCQ with Answer and Explanation

Question

Share Report Error

Which inventory valuation method is not permitted under Ind AS 2?

A. LIFO

B. FIFO

C. Specific identification

D. Weighted Average

Answer: Option A

Solution (By JKSSB Mock Tests)

Ind AS 2 does not permit LIFO as an acceptable method for inventory valuation.

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

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

A Trial Balance is prepared primarily to check the:

A. Liquidity of the firm

B. Profitability of the business

C. Arithmetical accuracy of ledger accounts

D. Financial position of the business

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Trial Balance lists all debit and credit balances to ensure total debits equal total credits, verifying mathematical accuracy.

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

Question #2

In 'Process Costing', normal loss is:

A. Not recorded separately; its cost is absorbed by good units

B. Valued at cost per unit and debited to Profit & Loss Account

C. Shown as an asset

D. Valued at scrap value, and cost per unit is adjusted

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Normal loss is expected; its scrap value, if any, reduces the cost of good units. The loss quantity is deducted, and cost per unit is computed on input minus normal loss.

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

Question #3

The 'Rule 86B' under GST restricts use of ITC for:

A. All taxpayers

B. Taxpayers with taxable outward supplies exceeding ₹50 lakh per month, allowing ITC utilisation for output tax up to 99% of output liability

C. No restriction

D. Only composition dealers

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Rule 86B mandates that large taxpayers must pay at least 1% of output liability in cash.

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

Explore All Accountancy and Book Keeping MCQs