Closing stock is generally valued at______________?

Related Mcqs:

1. While finalizing the current year‘s accounts, the company realized that an error was made in the calculation of closing stock of the previous year. In the previous year, closing stock was valued more by 50,000. As a result

   A. Previous year‘s profit is overstated and current year‘s profit is also overstated.
   B. Previous year‘s profit is understated and current year‘s profit is overstated.
   C. Previous year‘s profit is overstated and current year‘s profit is understated.
   D. There will be no impact on the profit of either the previous year or the current year.

2. Find the value of opening stock from the following data. Purchases 1,50,000, Closing stock 30,000 Sales 2,20,000, Gross profit 40,000.

   A. 50,000
   B. 55,000
   C. 60,000
   D. 65,000

3. Closing stock in the Trial Balance implies that______________?

   A. It is already adjusted in the opening stock
   B. It is adjusted in the Purchase A/c
   C. It is adjusted in the Cost of Sale A/c
   D. It is adjusted in the Profit &Loss A/c

4. Closing stock appearing in the Trial Balance is shown in:

   A. Trading A/c and Balance Sheet
   B. Profit and Loss A/c
   C. Balance Sheet only
   D. Trading A/c only

5. Closing entries are generally passed:

   A. At the time of opening new books of account
   B. At the time of closing the accounts
   C. During the course of accounting period any time
   D. After certification of accounts

6. Which of the following is the closing balance of a ledger account?

   A. Balance c/d
   B. Balance b/d
   C. Balance e/d
   D. Balance f/c

7. Which of the following is true regarding closing entries?

   A. They must be followed by reversing entries
   B. They transfer the balances in all of the Nominal Accounts to the Trading and Profit and Loss Account
   C. They must be made after the reversing entries but before the adjusting entries
   D. They must be made after the adjusting entries but before the reversing entries

8. During the year 2011-2012, the value of closing inventory was overstated by 25,000. Which of the following is true?

   A. The cost of goods sold was overstated during 2011-2012 and income will be understated during 2012-2013
   B. The income was overstated during 2011-12 and closing inventory will be overstated during 2012-2013
   C. The retained earnings was overstated during 2011-2012 and retained earnings will be understated during 2012-2013
   D. The cost of goods sold was understated during 2011-2012 but retained earnings will not be affected during 2012-2013

9. The closing balance of a petty cash book is a / an___________?

   A. Liability
   B. Gain
   C. Assets
   D. Loss

10. The closing balance of petty cash book is considered as_________?

    A. Liability
    B. Asset
    C. Expenses
    D. Income