Which of the following assets is/are to be valued at the lower of cost and net realizable value?

Accounting Mcqs 24/09/2020

A. Goodwill
B. Inventories
C. Investments
D. Both B. and C. above.

Inventories B. are to be valued at the lower of cost and net realizable value. All the other assets stated in other alternatives are valued as per the cost concept. Goodwill A. is a fixed intangible asset and is shown at the cost of its acquisition. Investments C. are valued at cost or market value whichever is less. The combination of B. and C. is incorrect because a correct answer with incorrect answer is an incorrect answer. Thus, the correct answer is B

Related Mcqs:

    Bookkeeping mainly concerns with which part of accounting process?
    A. Analyzing B. Preparing financial statements C. Recording financial information D. Auditing the books of accounts...
    Closing stock is generally valued at______________?
    A. Cost Price B. Market Price C. Cost price or Market price whichever is higher D. Cost price or Market price whichever is lower...
    Generally the term fund is used to mean the difference between?
    A. Current assets and current liabilities B. Profit and loss A/C and Balance sheet C. Current assets and non-current liabilities D. Current liabilities and non-current liabilities...
    Which of the following relationships is/are false?
    A. Net Profit = Gross Profit – Administration and Other expenses B. Net Profit = Gross Profit + Administration expenses and Other expenses C. Opening Stock + Purchases – Closing Stock = Cost of Sales D. Both B. and C. above...
    How many parties are generally found in a Bill of Exchange?
    A. 4 B. 2 C. 3 D. 5...

Leave a Reply

Your email address will not be published. Required fields are marked *