[Solved] Finished goods are valued for a balance sheet purpose

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

  1. Which among the following is not a right of company auditors.
  2. Test checking is done when there is an effective system of _________
  3. Test checking means
  4. Audit working papers are
  5. Current audit file consists of
  6. ____ begins where accounting ends.
  7. ________audit is compulsory for joint stock companies.
  8. Treating revenue expenditure as capital expenditure is an example of error of
  9. Financial statements are prepared by
  10. Preliminary expanses not written off are treated as

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