Finished goods are valued for a balance sheet purpose
a) At cost price
b) At market price
c) At lower of cost or market price
d) None of these
Answer: (c) Finished goods are valued for a balance sheet purpose at lower of cost or market price. Finished goods inventory is reported on the balance sheet as a current asset. That means they’re short-term assets meant to generate revenue within the next 12 months.
More MCQ and Answers on Auditing
- Which among the following is not a right of company auditors.
- Test checking is done when there is an effective system of _________
- Test checking means
- Audit working papers are
- Current audit file consists of
- ____ begins where accounting ends.
- ________audit is compulsory for joint stock companies.
- Treating revenue expenditure as capital expenditure is an example of error of
- Financial statements are prepared by
- Preliminary expanses not written off are treated as