B.COM AFM-1 (Inventory Valuation) MCQ's




Question 31 :
Under _____ method it is assumed that stock received first is issued first.

  1. LIFO
  2. All of the above
  3. Weighted Average
  4. FIFO
  

Question 32 :
Stock is valued at cost or at market value whichever is lower as per

  1. Realisation concept
  2. Cost concept
  3. Matching concept
  4. Entity Concept
  

Question 33 :
In _____ method, stock is valued at current rate.

  1. LIFO
  2. None of the above
  3. FIFO
  4. Weighted Average
  

Question 34 :
Inventory includes machinery purchased and held for giving on rental basis.

  1. TRUE
  2. FALSE
  

Question 35 :
Under _____ method stock is valued at oldest rate.

  1. FIFO
  2. LIFO
  3. All of the above
  4. Weighted Average
  

Question 36 :
Damaged inventory is valued at cost or market value whichever is lower.

  1. TRUE
  2. FALSE
  

Question 37 :
Replacement cost is the cost of the asset on the date of replacement.

  1. TRUE
  2. FALSE
  

Question 38 :
Under perpetual inventory system, inventory is valued

  1. Continuously
  2. Yearly
  3. Half yearly
  4. None of the above
  

Question 39 :
Under _____ stock taking stock is valued periodically.

  1. Periodic
  2. Perpetual
  3. Physical
  4. All of the above
  

Question 40 :
The standard which governs inventory valuation is

  1. AS 3
  2. AS 2
  3. AS 10
  4. AS 6
  

Question 41 :
Under _____ method closing inventory is valued at latest rate.

  1. LIFO
  2. FIFO
  3. Weighted Average
  4. All of the above
  

Question 42 :
Current year’s profit is understated when

  1. Opening stock is undervalued
  2. Opening stock is overvalued
  3. Closing stock is undervalued
  4. Both (b) and (c)
  

Question 43 :
AS–2 recognises _____ and _____ Methods.

  1. LIFO ; Weighted Average
  2. Non of the above
  3. FIFO ; LIFO
  4. FIFO ; Weighted Average
  

Question 44 :
The system in which fluctuations in prices are averaged out

  1. Weighted Average Method
  2. FIFO Method
  3. LIFO Method
  4. None of the above
  

Question 45 :
Under this method it is assumed that units are issued at random

  1. Average
  2. FIFO
  3. LIFO
  4. None of the above
  

Question 46 :
_____ method assumes that stock received first is issued first.

  1. LIFO
  2. FIFO
  3. Weighted Average
  4. None of the above
  

Question 47 :
Market Value is

  1. Net realisable value
  2. Net realisable value less profit
  3. Discounted present value
  4. None of the above
  

Question 48 :
_____ _____ _____ is followed when there are fluctuations in prices.

  1. FIFO
  2. LIFO
  3. None of the above
  4. WAM
  

Question 49 :
Periodic inventory system makes available continuous balance of stock.

  1. TRUE
  2. FALSE
  

Question 50 :
Under _____ method, fluctuations in prices are overcome.

  1. FIFO
  2. LIFO
  3. All of the above
  4. Weighted Average
  

Question 51 :
In _____ method, Balance Sheet shows current cost of stock.

  1. LIFO
  2. FIFO
  3. None of the above
  4. Weighted Average
  

Question 52 :
Historical cost is the cost to be incurred in future.

  1. TRUE
  2. FALSE
  

Question 53 :
FIFO Method is logical.

  1. TRUE
  2. FALSE
  

Question 54 :
The system which keeps records continuously is

  1. Perpetua
  2. Periodic
  3. Physical
  4. None of the above
  

Question 55 :
_____ method is recognised by AS 2.

  1. LIFO
  2. FIFO
  3. Weighted Average
  4. None of the above
  

Question 56 :
_____ method is suitable for perishable goods.

  1. LIFO
  2. None of the above
  3. Weighted Average
  4. FIFO
  
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