B.COM AFM-1 (Accounting-Valuation Of Inventories) MCQ's




Question 31 :
Assets invented by the proprietor are called as inventories.

  1. TRUE
  2. FALSE
  

Question 32 :
Inventory is valued of

  1. Cost only
  2. M.V. only
  3. Cost or N.R.V. whichever is less
  4. None of the above
  

Question 33 :
By-products, wastes and spares are to be valued at net realisable price if their value is not _____.

  1. Spare Parts
  2. Finished Goods
  3. None of the above
  4. material
  

Question 34 :
As per AS, goods and services produced and kept aside for specific projects should be valued at

  1. Contract price
  2. Net realisable value
  3. Identified individual cost
  4. Pre-placement cost
  

Question 35 :
AS–2 (Revised) is applicable to _____ enterprise.

  1. not all
  2. Selective
  3. None of the above
  4. all
  

Question 36 :
Cost of Inventory should include

  1. Import duties
  2. Taxes
  3. Canriage
  4. All of the above
  

Question 37 :
Main product is the target product of insignificant value.

  1. TRUE
  2. FALSE
  

Question 38 :
Cost of inventory does not include

  1. Selling cost
  2. Office overheads
  3. Exceptional waste of material
  4. All of the above
  

Question 39 :
Inventory should be valued at cost or M.V. whichever is _____.

  1. More
  2. Same
  3. None of the above
  4. Less
  

Question 40 :
As per AS–2, inventory should be valued at

  1. Cost
  2. Lower of cost and net realisable value
  3. Realisable value
  4. Retail price
  

Question 41 :
As per AS 2 while valuing inventories sales commission should be

  1. Deducted in arriving at NRV
  2. Added to cost
  3. Deducted from cost
  4. None
  

Question 42 :
Abnormal wastage of material should not be included in the cost of inventories.

  1. TRUE
  2. FALSE
  

Question 43 :
Cost of transport of material

  1. Increases landing cost of material
  2. Increases conversin cost
  3. Decreases variable cost
  4. None of the above
  

Question 44 :
As per AS 2 inventories should be valued at cost or at N.R.V. whiver is less.

  1. TRUE
  2. FALSE
  

Question 45 :
Main product is the target product of _____ value.

  1. Inventory
  2. Net realisable
  3. All of the above
  4. significant
  

Question 46 :
Inventories are assets

  1. held for sale in the ordinary course of business
  2. held for long term capital appreciation
  3. held for production of goods
  4. (a) and (c)
  

Question 47 :
Undervaluation of stock _____ profits.

  1. Inflates
  2. Deflates
  3. All of the above
  4. Maximise
  

Question 48 :
LIFO method is not recognised by AS 2.

  1. TRUE
  2. FALSE
  

Question 49 :
Inventories do _____ include machinery.

  1. Partialy
  2. not
  3. Mostly
  4. None of the above
  

Question 50 :
Overvaluation of stock inflates profit.

  1. TRUE
  2. FALSE
  

Question 51 :
Inventories of finished goods are not held for sale in the ordinary course of business.

  1. TRUE
  2. FALSE
  

Question 52 :
AS per AS 2 cost of inventory should not include

  1. Interest on loan
  2. Direct Material
  3. Direct Labour
  4. Overheads
  

Question 53 :
AS–2 states that, inventory should be valued at

  1. FIFO or weighted average basis
  2. Retail price of standard cost
  3. LIFO
  4. Current replacement cost
  

Question 54 :
As per AS–2, inventory covers

  1. Live stock
  2. Goods purchased for resale
  3. Investment held as stock in trade
  4. WIP in construction contracts
  

Question 55 :
Valuation of inventories is governed by

  1. Companies Act
  2. Income Tax Act
  3. AS–2
  4. AS–6
  

Question 56 :
Retail method of inventory valution is

  1. Sales less gross profit
  2. Cost plus net profit
  3. Sales plus gross profit
  4. Sales less net profit
  
Pages