Accounting and Financial Analysis
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Questions and Answers

What is the total value of stock included in the balance sheet of 7.NS Ltd. as on March 31, 2019?

  • ₹7,25,000
  • ₹5,35,000
  • ₹6,25,000
  • ₹6,35,000 (correct)

    • What is the total cost of raw materials introduced in the process?

  • ₹1,800
  • ₹1,600
  • ₹2,000
  • ₹1,000 (correct)

    • What is the scrap value of each unit lost in the course of manufacturing?

  • ₹5
  • ₹2
  • ₹3 (correct)
  • ₹4

    • What is the percentage of units normally lost in the course of manufacturing?

    <p>10%</p> Signup and view all the answers

    Which of the following statements is correct with respect to inventories?

    <p>FIFO seldom coincides with the actual physical flow of inventory.</p> Signup and view all the answers

    Which of the following method of inventory valuation is not recommended by AS-2?

    <p>Last-in-First Out Method</p> Signup and view all the answers

    What is the estimated Selling Price of the Inventory?

    <p>11 Million</p> Signup and view all the answers

    What is the Net Realisable Value of the Inventory at the end of Year 2?

    <p>10.5 Million</p> Signup and view all the answers

    How is the Inventory valued at the end of Year 1?

    <p>7.5 Million</p> Signup and view all the answers

    What is the impact in P&L at the end of Year 1?

    <p>2.5 Million Dr</p> Signup and view all the answers

    Which of the following is an example of an Adjusting Event?

    <p>All of the above</p> Signup and view all the answers

    What is the estimated Selling Expenses of the Inventory?

    <p>70.5 Million</p> Signup and view all the answers

    What is included in the cost of inventory as per AS-2?

    <p>Freight inwards</p> Signup and view all the answers

    What is the correct disclosure of closing stock as at 31.3.2019 as per AS-2?

    <p>9.9 Lakhs</p> Signup and view all the answers

    What is the cost of a partly finished unit as per AS-2?

    <p>530</p> Signup and view all the answers

    Why is the valuation of inventory critical according to AS-2?

    <p>It has a significant impact on the understanding of financial performance</p> Signup and view all the answers

    Where should the accounting policies regarding inventory valuation be disclosed?

    <p>In the notes to the financial statements</p> Signup and view all the answers

    What is the purpose of disclosing accounting policies regarding inventory valuation?

    <p>To understand the financial performance of the company</p> Signup and view all the answers

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