CA Foundation Inventories — practice questions
25 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CA Foundation Inventories in the app →Inventory is valued at the lower of cost and:Which is NOT included in the cost of inventory?Periodic inventory system determines cost of goods sold as:Which method assigns specific costs to specifically identified items of inventory?In FIFO method, closing inventory consists of:If closing inventory is overstated, net income for the period will be:Which expense is NOT excluded from inventory cost?Stock of items P, Q, R have cost ₹38L, ₹29L, ₹17L and NRV ₹42L, ₹29L, ₹14L. Closing stock value:Perpetual inventory system differs from periodic in that it:Purchases: Dec 4: 900 units at ₹50; Dec 10: 400 at ₹55; Dec 11: 300 at ₹55; Dec 19: 200 at ₹60; Dec 28: 800 atWhich of these is the principal advantage of perpetual inventory system?Net realisable value for raw materials is generally taken as:Disclosure of accounting policy for inventory measurement is required by:Cost of inventory of 100 units: purchase ₹10,000 (GST ₹1,800 credit available), labour ₹3,000, unloading ₹200,Under LIFO, the cost of goods sold corresponds to:Periodic system cannot detect:Inventory turnover ratio is most affected by:If opening inventory is understated, current year's net income is:Cost of conversion includes:Under weighted average method, value per unit at issue is computed as:Adjusted selling price method is typically used in:Borrowing costs may be included in inventory cost when:If GST paid on raw materials is recoverable as input credit, the inventory cost is:Inventory of slow-moving items is generally:Periodic inventory taking requires: