CA Foundation Exam > CA Foundation Questions > Closing stock is valued at lower of cost or r...
Start Learning for Free
Closing stock is valued at lower of cost or relisable value.identify the principle and explain it?
Most Upvoted Answer
Closing stock is valued at lower of cost or relisable value.identify t...
The principle used is conservatism or prudence. This principle states that the entity has to take into account the probable losses and ignore the probable gains.
Hence the closing stock or inventory is valued at lower of cost or realisable value.
Cost= The actual amount paid to purchase the stock
Realisable value= The amount that can be realised by selling the same stock without processing.
Hence inventory will be lower of the both by considering the prudence principle used for the preparation of financial statements.
Hence the closing stock or inventory is valued at lower of cost or realisable value.
Cost= The actual amount paid to purchase the stock
Realisable value= The amount that can be realised by selling the same stock without processing.
Hence inventory will be lower of the both by considering the prudence principle used for the preparation of financial statements.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
Closing stock is valued at lower of cost or relisable value.identify the principle and explain it?
Question Description
Closing stock is valued at lower of cost or relisable value.identify the principle and explain it? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Closing stock is valued at lower of cost or relisable value.identify the principle and explain it? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Closing stock is valued at lower of cost or relisable value.identify the principle and explain it?.
Closing stock is valued at lower of cost or relisable value.identify the principle and explain it? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Closing stock is valued at lower of cost or relisable value.identify the principle and explain it? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Closing stock is valued at lower of cost or relisable value.identify the principle and explain it?.
Solutions for Closing stock is valued at lower of cost or relisable value.identify the principle and explain it? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Closing stock is valued at lower of cost or relisable value.identify the principle and explain it? defined & explained in the simplest way possible. Besides giving the explanation of
Closing stock is valued at lower of cost or relisable value.identify the principle and explain it?, a detailed solution for Closing stock is valued at lower of cost or relisable value.identify the principle and explain it? has been provided alongside types of Closing stock is valued at lower of cost or relisable value.identify the principle and explain it? theory, EduRev gives you an
ample number of questions to practice Closing stock is valued at lower of cost or relisable value.identify the principle and explain it? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup