CA Foundation Exam > CA Foundation Questions > Accounting policy for inventories of Xeta Ent...
Start Learning for Free
Accounting policy for inventories of Xeta Enterprises states that inventories are valued at the lower of cost determined on weighted average basis or not realizable value. Which accounting principle in followed in adopting the above policy?
- a)Materiality.
- b)Prudence.
- c)Substance over form.
- d)All of above.
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Accounting policy for inventories of Xeta Enterprises states that inve...
Explanation:
The accounting policy for inventories of Xeta Enterprises states that inventories are valued at the lower of cost determined on a weighted average basis or not realizable value. This policy is in line with the principle of prudence.
Prudence is an accounting principle that requires caution and conservatism in financial reporting. It states that in case of uncertainty, a conservative approach should be adopted to avoid overstating assets or income and understating liabilities or expenses. The principle of prudence is important in financial reporting as it ensures that financial statements are not misleading.
In the case of Xeta Enterprises, the policy of valuing inventories at the lower of cost or not realizable value is a conservative approach that reflects the principle of prudence. This policy ensures that the value of inventories is not overstated, and any potential losses are recognized in a timely manner.
Conclusion:
In conclusion, the accounting policy of Xeta Enterprises for valuing inventories reflects the principle of prudence. This policy ensures that the financial statements are not misleading and that potential losses are recognized in a timely manner.
The accounting policy for inventories of Xeta Enterprises states that inventories are valued at the lower of cost determined on a weighted average basis or not realizable value. This policy is in line with the principle of prudence.
Prudence is an accounting principle that requires caution and conservatism in financial reporting. It states that in case of uncertainty, a conservative approach should be adopted to avoid overstating assets or income and understating liabilities or expenses. The principle of prudence is important in financial reporting as it ensures that financial statements are not misleading.
In the case of Xeta Enterprises, the policy of valuing inventories at the lower of cost or not realizable value is a conservative approach that reflects the principle of prudence. This policy ensures that the value of inventories is not overstated, and any potential losses are recognized in a timely manner.
Conclusion:
In conclusion, the accounting policy of Xeta Enterprises for valuing inventories reflects the principle of prudence. This policy ensures that the financial statements are not misleading and that potential losses are recognized in a timely manner.
Free Test
FREE
| Start Free Test |
Community Answer
Accounting policy for inventories of Xeta Enterprises states that inve...
Bcoz prudence concept says cost or net realizable value which ever is lower in this cost is less than net realizable value
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
|
|
Top Courses for CA FoundationView all
Accounting policy for inventories of Xeta Enterprises states that inventories are valued at the lower of cost determined on weighted average basis or not realizable value. Which accounting principle in followed in adopting the above policy?a)Materiality.b)Prudence.c)Substance over form.d)All of above.Correct answer is option 'B'. Can you explain this answer?
Question Description
Accounting policy for inventories of Xeta Enterprises states that inventories are valued at the lower of cost determined on weighted average basis or not realizable value. Which accounting principle in followed in adopting the above policy?a)Materiality.b)Prudence.c)Substance over form.d)All of above.Correct answer is option 'B'. Can you explain this answer? 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 Accounting policy for inventories of Xeta Enterprises states that inventories are valued at the lower of cost determined on weighted average basis or not realizable value. Which accounting principle in followed in adopting the above policy?a)Materiality.b)Prudence.c)Substance over form.d)All of above.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Accounting policy for inventories of Xeta Enterprises states that inventories are valued at the lower of cost determined on weighted average basis or not realizable value. Which accounting principle in followed in adopting the above policy?a)Materiality.b)Prudence.c)Substance over form.d)All of above.Correct answer is option 'B'. Can you explain this answer?.
Accounting policy for inventories of Xeta Enterprises states that inventories are valued at the lower of cost determined on weighted average basis or not realizable value. Which accounting principle in followed in adopting the above policy?a)Materiality.b)Prudence.c)Substance over form.d)All of above.Correct answer is option 'B'. Can you explain this answer? 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 Accounting policy for inventories of Xeta Enterprises states that inventories are valued at the lower of cost determined on weighted average basis or not realizable value. Which accounting principle in followed in adopting the above policy?a)Materiality.b)Prudence.c)Substance over form.d)All of above.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Accounting policy for inventories of Xeta Enterprises states that inventories are valued at the lower of cost determined on weighted average basis or not realizable value. Which accounting principle in followed in adopting the above policy?a)Materiality.b)Prudence.c)Substance over form.d)All of above.Correct answer is option 'B'. Can you explain this answer?.
Solutions for Accounting policy for inventories of Xeta Enterprises states that inventories are valued at the lower of cost determined on weighted average basis or not realizable value. Which accounting principle in followed in adopting the above policy?a)Materiality.b)Prudence.c)Substance over form.d)All of above.Correct answer is option 'B'. Can you explain this answer? 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 Accounting policy for inventories of Xeta Enterprises states that inventories are valued at the lower of cost determined on weighted average basis or not realizable value. Which accounting principle in followed in adopting the above policy?a)Materiality.b)Prudence.c)Substance over form.d)All of above.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Accounting policy for inventories of Xeta Enterprises states that inventories are valued at the lower of cost determined on weighted average basis or not realizable value. Which accounting principle in followed in adopting the above policy?a)Materiality.b)Prudence.c)Substance over form.d)All of above.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Accounting policy for inventories of Xeta Enterprises states that inventories are valued at the lower of cost determined on weighted average basis or not realizable value. Which accounting principle in followed in adopting the above policy?a)Materiality.b)Prudence.c)Substance over form.d)All of above.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Accounting policy for inventories of Xeta Enterprises states that inventories are valued at the lower of cost determined on weighted average basis or not realizable value. Which accounting principle in followed in adopting the above policy?a)Materiality.b)Prudence.c)Substance over form.d)All of above.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Accounting policy for inventories of Xeta Enterprises states that inventories are valued at the lower of cost determined on weighted average basis or not realizable value. Which accounting principle in followed in adopting the above policy?a)Materiality.b)Prudence.c)Substance over form.d)All of above.Correct answer is option 'B'. Can you explain this answer? 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