Accounts (Inventories) - CPT - Study Material question
This query is : Resolved
IPCC Student
(Querist)
03 December 2009
Q. Which of the following is false :
a.) The value of ending inventory under simple average price method is realistic.
b.) Usually profit or loss will not arise out of pricing the issues on the basis of average price method.
c.) The value of stock is shown on the asset side of balance sheet as fixed assets.
d.) Opening stock + Purchases - cost of goods sold is the value of closing stock.
---------------------------
According to the answer given by study material, - a, b & d are false but I have the following views:
1. option d is correct.
2. option c is false.
Pls resolve the query and explain with reasons.
Regards
Pradeep Goyal
a.) The value of ending inventory under simple average price method is realistic.
b.) Usually profit or loss will not arise out of pricing the issues on the basis of average price method.
c.) The value of stock is shown on the asset side of balance sheet as fixed assets.
d.) Opening stock + Purchases - cost of goods sold is the value of closing stock.
---------------------------
According to the answer given by study material, - a, b & d are false but I have the following views:
1. option d is correct.
2. option c is false.
Pls resolve the query and explain with reasons.
Regards
Pradeep Goyal
Kishanlal Paliwal
(Expert)
03 December 2009
The question asked about the false statement, accordingly option 'C' is false since the inventory is treated as current asset.
Regards
Regards
CA Ravi Sisodia
(Expert)
03 December 2009
yes, option 'c' is false.
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