Which of these is not method of stock valuation?
FIFO method
Base method
Standard method
LIFO
Correct answer is C
The methods of stock valuation are: FIFO, LIFO, Weighted Average Price Method, Simple Average Price Method, Base stock method.
|
₦ |
|
|
Plant and Machinery |
190000 |
|
Motor Vehicle |
170000 |
| Stock | 60000 |
|
Current Liabilities |
50000 |
|
Purchase consideration |
40000 |
The goodwill is?
₦110,000
₦30,000
₦90,000
₦80,000
Correct answer is B
Goodwill = Purchase consideration - value of assets
Total value of assets = 190,000 + 170,000 + 60,000 - (50,000)
= 370,000
Therefore, Goodwill = 400,000 - 370,000
= ₦30,000
Which of the following is charged to trading account?
Rent
Discount allowed
Carriage inwards
Carriage outwards
Correct answer is C
Carriage inwards is the cost of transportation charged on goods purchased. It must be added to the goods purchased, hence it is debited to trading account.
The short term solvency of a company is determined with ------- ratio
Acid test
Gross profit margin
Debt to equity
Current
Correct answer is D
The current or working capital ratio is a test of a business's short-term solvency — its capability to pay its liabilities that come due in the near future (up to one year).
matching
business entity
going concern
historical cost
Correct answer is C
The going concern concept states that a business will continue to operate for an indefinte period of time or perpectual existence.