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Choose the correct answer(more than one)
Q.Which of the following is false?
- a)The value of ending inventory under simple average price method is realistic
- b)Usually profit or loss will not arise out of pricing the issues on the basis of simple average price method
- c)The value of stock is shown on the assets side of the balance-sheet as fixed assets
- d)Opening stock plus purchases minus cost of goods sold is the value of closing stock.
Correct answer is option 'A,B,D'. Can you explain this answer?
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Choose the correct answer(more than one)Q.Which of the following is fa...
False Statements:
1. The value of ending inventory under simple average price method is realistic.
2. Usually profit or loss will not arise out of pricing the issues on the basis of simple average price method.
3. The value of stock is shown on the assets side of the balance-sheet as fixed assets.
4. Opening stock plus purchases minus cost of goods sold is the value of closing stock.
Explanation:
1. The value of ending inventory under simple average price method is realistic:
The statement is false. The simple average price method assumes that all items in the inventory have the same cost. However, in reality, the cost of items can vary. Therefore, using a simple average price to value the ending inventory may not accurately reflect the actual cost of the inventory.
2. Usually profit or loss will not arise out of pricing the issues on the basis of simple average price method:
The statement is false. Profit or loss can arise from pricing the issues on the basis of the simple average price method. This is because the simple average price may not accurately reflect the actual cost of the items sold. If the items sold have a different cost than the average price, it can result in a profit or loss.
3. The value of stock is shown on the assets side of the balance-sheet as fixed assets:
The statement is false. The value of stock is not shown as fixed assets on the assets side of the balance sheet. Stock is shown as a current asset on the assets side of the balance sheet. Fixed assets include items such as land, buildings, and machinery.
4. Opening stock plus purchases minus cost of goods sold is the value of closing stock:
The statement is false. Opening stock plus purchases minus cost of goods sold gives the value of the goods available for sale, not the value of closing stock. To determine the value of closing stock, the cost of goods sold needs to be subtracted from the value of goods available for sale.
In conclusion, the false statements are A, B, and D. The value of ending inventory under the simple average price method may not be realistic, profit or loss can arise from pricing issues based on the simple average price method, and opening stock plus purchases minus cost of goods sold does not give the value of closing stock.
1. The value of ending inventory under simple average price method is realistic.
2. Usually profit or loss will not arise out of pricing the issues on the basis of simple average price method.
3. The value of stock is shown on the assets side of the balance-sheet as fixed assets.
4. Opening stock plus purchases minus cost of goods sold is the value of closing stock.
Explanation:
1. The value of ending inventory under simple average price method is realistic:
The statement is false. The simple average price method assumes that all items in the inventory have the same cost. However, in reality, the cost of items can vary. Therefore, using a simple average price to value the ending inventory may not accurately reflect the actual cost of the inventory.
2. Usually profit or loss will not arise out of pricing the issues on the basis of simple average price method:
The statement is false. Profit or loss can arise from pricing the issues on the basis of the simple average price method. This is because the simple average price may not accurately reflect the actual cost of the items sold. If the items sold have a different cost than the average price, it can result in a profit or loss.
3. The value of stock is shown on the assets side of the balance-sheet as fixed assets:
The statement is false. The value of stock is not shown as fixed assets on the assets side of the balance sheet. Stock is shown as a current asset on the assets side of the balance sheet. Fixed assets include items such as land, buildings, and machinery.
4. Opening stock plus purchases minus cost of goods sold is the value of closing stock:
The statement is false. Opening stock plus purchases minus cost of goods sold gives the value of the goods available for sale, not the value of closing stock. To determine the value of closing stock, the cost of goods sold needs to be subtracted from the value of goods available for sale.
In conclusion, the false statements are A, B, and D. The value of ending inventory under the simple average price method may not be realistic, profit or loss can arise from pricing issues based on the simple average price method, and opening stock plus purchases minus cost of goods sold does not give the value of closing stock.
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Choose the correct answer(more than one)Q.Which of the following is false?a)The value of ending inventory under simple average price method is realisticb)Usually profit or loss will not arise out of pricing the issues on the basis of simple average price methodc)The value of stock is shown on the assets side of the balance-sheet as fixed assetsd)Opening stock plus purchases minus cost of goods sold is the value of closing stock.Correct answer is option 'A,B,D'. Can you explain this answer?
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Choose the correct answer(more than one)Q.Which of the following is false?a)The value of ending inventory under simple average price method is realisticb)Usually profit or loss will not arise out of pricing the issues on the basis of simple average price methodc)The value of stock is shown on the assets side of the balance-sheet as fixed assetsd)Opening stock plus purchases minus cost of goods sold is the value of closing stock.Correct answer is option 'A,B,D'. 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 Choose the correct answer(more than one)Q.Which of the following is false?a)The value of ending inventory under simple average price method is realisticb)Usually profit or loss will not arise out of pricing the issues on the basis of simple average price methodc)The value of stock is shown on the assets side of the balance-sheet as fixed assetsd)Opening stock plus purchases minus cost of goods sold is the value of closing stock.Correct answer is option 'A,B,D'. 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 Choose the correct answer(more than one)Q.Which of the following is false?a)The value of ending inventory under simple average price method is realisticb)Usually profit or loss will not arise out of pricing the issues on the basis of simple average price methodc)The value of stock is shown on the assets side of the balance-sheet as fixed assetsd)Opening stock plus purchases minus cost of goods sold is the value of closing stock.Correct answer is option 'A,B,D'. Can you explain this answer?.
Choose the correct answer(more than one)Q.Which of the following is false?a)The value of ending inventory under simple average price method is realisticb)Usually profit or loss will not arise out of pricing the issues on the basis of simple average price methodc)The value of stock is shown on the assets side of the balance-sheet as fixed assetsd)Opening stock plus purchases minus cost of goods sold is the value of closing stock.Correct answer is option 'A,B,D'. 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 Choose the correct answer(more than one)Q.Which of the following is false?a)The value of ending inventory under simple average price method is realisticb)Usually profit or loss will not arise out of pricing the issues on the basis of simple average price methodc)The value of stock is shown on the assets side of the balance-sheet as fixed assetsd)Opening stock plus purchases minus cost of goods sold is the value of closing stock.Correct answer is option 'A,B,D'. 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 Choose the correct answer(more than one)Q.Which of the following is false?a)The value of ending inventory under simple average price method is realisticb)Usually profit or loss will not arise out of pricing the issues on the basis of simple average price methodc)The value of stock is shown on the assets side of the balance-sheet as fixed assetsd)Opening stock plus purchases minus cost of goods sold is the value of closing stock.Correct answer is option 'A,B,D'. Can you explain this answer?.
Solutions for Choose the correct answer(more than one)Q.Which of the following is false?a)The value of ending inventory under simple average price method is realisticb)Usually profit or loss will not arise out of pricing the issues on the basis of simple average price methodc)The value of stock is shown on the assets side of the balance-sheet as fixed assetsd)Opening stock plus purchases minus cost of goods sold is the value of closing stock.Correct answer is option 'A,B,D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Choose the correct answer(more than one)Q.Which of the following is false?a)The value of ending inventory under simple average price method is realisticb)Usually profit or loss will not arise out of pricing the issues on the basis of simple average price methodc)The value of stock is shown on the assets side of the balance-sheet as fixed assetsd)Opening stock plus purchases minus cost of goods sold is the value of closing stock.Correct answer is option 'A,B,D'. Can you explain this answer?, a detailed solution for Choose the correct answer(more than one)Q.Which of the following is false?a)The value of ending inventory under simple average price method is realisticb)Usually profit or loss will not arise out of pricing the issues on the basis of simple average price methodc)The value of stock is shown on the assets side of the balance-sheet as fixed assetsd)Opening stock plus purchases minus cost of goods sold is the value of closing stock.Correct answer is option 'A,B,D'. Can you explain this answer? has been provided alongside types of Choose the correct answer(more than one)Q.Which of the following is false?a)The value of ending inventory under simple average price method is realisticb)Usually profit or loss will not arise out of pricing the issues on the basis of simple average price methodc)The value of stock is shown on the assets side of the balance-sheet as fixed assetsd)Opening stock plus purchases minus cost of goods sold is the value of closing stock.Correct answer is option 'A,B,D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Choose the correct answer(more than one)Q.Which of the following is false?a)The value of ending inventory under simple average price method is realisticb)Usually profit or loss will not arise out of pricing the issues on the basis of simple average price methodc)The value of stock is shown on the assets side of the balance-sheet as fixed assetsd)Opening stock plus purchases minus cost of goods sold is the value of closing stock.Correct answer is option 'A,B,D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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