Question
Under inflationary trend, which of the methods will show
highest value of inventory?Solution
Under inflationary trend, FIFO method will result in showing the highest value of inventory because it assumes that the items that were purchased first are sold first. This means that the items remaining in inventory are assumed to have been purchased at more recent and higher prices, reflecting the rising costs due to inflation. As a result, the cost of goods sold is lower, and the ending inventory is higher, leading to a higher overall value of inventory.
As per RBI’s KYC/AML guidelines on wire transfers, the term “Beneficiary” refers to:
Which type of prospectus can be used for inviting subscriptions of securities for one or more issues over a certain period of time?
According to AS 26, which of the following costs cannot be capitalized as part of an intangible asset?
Which of the following point is NOT a direct advantage of automating business processes in the enterprise information system?
Post-merger, the acquirer reports a goodwill of â‚ą120 crore, 40% higher than the net assets acquired. Upon impairment testing, only â‚ą10 crore is reco...
Goods purchased from A for â‚ą10,000 passed through the sales book. The error will result in:
In which year Indian Contract Act was enacted?
Which of the following financial statements would provide information about a company's income?
A bank finds it difficult to repay the short term deposits on maturity because the funds of the bank are locked in ____
State whether the given statements are true or false.
(a) First In First Out method of valuing materials issues is suitable in times of rising pr...
