18 Questions
What is the total value of stock included in the balance sheet of 7.NS Ltd. as on March 31, 2019?
₹6,35,000
What is the total cost of raw materials introduced in the process?
₹1,000
What is the scrap value of each unit lost in the course of manufacturing?
₹3
What is the percentage of units normally lost in the course of manufacturing?
10%
Which of the following statements is correct with respect to inventories?
FIFO seldom coincides with the actual physical flow of inventory.
Which of the following method of inventory valuation is not recommended by AS-2?
Last-in-First Out Method
What is the estimated Selling Price of the Inventory?
11 Million
What is the Net Realisable Value of the Inventory at the end of Year 2?
10.5 Million
How is the Inventory valued at the end of Year 1?
7.5 Million
What is the impact in P&L at the end of Year 1?
2.5 Million Dr
Which of the following is an example of an Adjusting Event?
All of the above
What is the estimated Selling Expenses of the Inventory?
70.5 Million
What is included in the cost of inventory as per AS-2?
Freight inwards
What is the correct disclosure of closing stock as at 31.3.2019 as per AS-2?
9.9 Lakhs
What is the cost of a partly finished unit as per AS-2?
530
Why is the valuation of inventory critical according to AS-2?
It has a significant impact on the understanding of financial performance
Where should the accounting policies regarding inventory valuation be disclosed?
In the notes to the financial statements
What is the purpose of disclosing accounting policies regarding inventory valuation?
To understand the financial performance of the company
Test your knowledge of accounting and financial analysis with this quiz. Answer questions on financial statements, stock valuation, and more. Improve your understanding of financial concepts and principles.
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