[Solved] Stock should be valued at

Stock should be valued at

a) Cost

b) Market price

c) Cost price or market price whichever is lower

d) Cost less depreciation

Answer: (c) Stock should be valued at cost price or market price whichever is lower. As per the conservatism principle of accounting, the closing stock is valued at cost price or at market price whichever is less.

More MCQ and Answers on Auditing

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