Stock Valuation Generix Content - Stock Valuation
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"Stock Valuation" question number distribution across years
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JAMB questions for "Financial Accounting :: Stock Valuation"
Q1
If the gross profit margin is 10%, what is the value of the cost of goods sold?
A
₦10 000
B
₦90 000
C
₦105 600
D
₦110 000
E
Q2
If the opening stock is 5% of sales, calculate the purchases.
A
₦95 600
B
₦95 000
C
₦90 600
D
₦85 000
E
Q3
Determine the capital of the business
A
₦9 400
B
₦6 000
C
₦3 400
D
₦3 000
E
Q4
What is the net working capital?
A
₦2 600
B
₦1 800
C
₦800
D
₦600
E
Q5
Using FIFO method, what is the value of the closing stock?
A
₦34 000
B
₦29 000
C
₦17 000
D
₦12 000
E
Q6
What is the value of closing stock using simple average?
A
₦11 500
B
₦17 000
C
₦17 500
D
₦28 500
E
Q7
Which of the following methods gives a conservative closing stock value during a period of rising prices?
A
LIFO
B
FIFO
C
Simple average
D
Periodic simple average
E
Q8
Determine the closing stock
A
₦76 800
B
₦67 800
C
₦14 100
D
₦11 400
E
Q9
Using the simple average method, what is the cost per unit of the closing stock?
A
₦80
B
₦74
C
₦64
D
₦60
E
Q10
Using the FIFO method, what is the value of the closing stock?
A
₦1 280
B
₦1 184
C
₦1 024
D
₦960
E
Q11
In a period of inflation, which of the following methods normally gives a closing stock value very close to the market value?
A
FIFO
B
LIFO
C
Simple average
D
Periodic simple average
E
Q12
Determine the closing stock
A
5,500
B
66,500
C
2,500
D
4,500
E
Q13
The gross profit disclosed in the branch stock adjustment account represents
A
head office profit
B
unrealized profit
C
estimated profit
D
branch stock
E
Q14
Stock valuation is useful because it informs the sales department on the
A
prices of the competing goods
B
prices that will affect profitability
C
number of goods to produce
D
number of goods to sell
E
Q15
A seller of vegetables and fruit should be encouraged to value his stock at the end of a period using the
A
weighted average method
B
simple average method
C
FIFO method
D
LIFO method
E
Q16
Assuming the closing stock was valued at ₦19,000 at the end of November, what was the gross profit?
A
₦30,000
B
₦50,000
C
₦70,000
D
₦100,000
E
Q17
Determine the value of closing stock using the LIFO method
A
₦2,000
B
₦2,500
C
₦4,000
D
₦3,500
E
Q18
A private company is different from a public company because
A
it does not restrict the right to transfer its shares
B
it cannot invite members of the public to subscribe for its shares
C
its shares are owned by one person
D
it can only offer its shares to members of the public for subscription
E
Q19
The value of Y is
A
₦11,500
B
₦8,500
C
₦13,000
D
₦10,000
E
Q20
Determine the closing stock
A
₦50000
B
₦20000
C
₦30000
D
₦40000
E
Q21
Determine the closing stock under LIFO method
A
₦375
B
₦575
C
₦275
D
₦500
E
Q22
Calculate the closing stock under FIFO method
A
₦300
B
₦600
C
₦875
D
₦675
E
Q23
The quick ratio is
A
1:7:1
B
3:1
C
1:2
D
1:3:1
E
Q24
The current ratio is
A
3:5:1
B
1:1
C
2:1
D
2:8:1
E
Q25
A company paid cash in redemption of ₦10000 debenture. The accounting entry to record this will be to debit
A
debenture and credit cash
B
capital and debit cash
C
cash and credit debenture
D
cash and credit capital
E
Q26
The journal entries for the purchase of stock on credit are to debit
A
suspense account and cash account
B
purchase account and credit liability account
C
stock account and credit cash account
D
stock account and credit liability account
E
Q27
Based on the FIFO method of valuation, the total cost of raw materials issued is
A
₦240
B
₦250
C
₦150
D
₦160
E
Q28
What is the value of raw materials issued on May 17th based on the FIFO method?
A
₦62
B
₦64
C
₦61
D
₦60
E
Q29
Where closing stock in undervalued, the effect is
A
a decrease in purchases
B
an increase in gross profit
C
a decrease in gross profit
D
an increase in purchases
E
Q30
The stock valuation data is important because it enables management to
A
seperate debtors from creditors
B
determine the cost of stock at the end of business
C
determine the cost of stock at the beginning of business
D
determine the total cost of goods purchased
E
Q31
What is the closing stock of raw material?
A
₦4,000
B
₦3,000
C
₦2,000
D
₦1,000
E
Q32
The overhead cost is
A
₦71,050
B
₦68,250
C
₦67,970
D
₦66,080
E
Q33
The closing stock for this company is
A
₦72,000
B
₦16,168
C
₦42,500
D
₦31,250
E
Q34
Calculate the cost of goods credited to the head office trading account
A
₦7,660
B
₦7,500
C
₦7,460
D
₦7,200
E
Q35
Which method of pricing can be used satisfactorily in either a rising or falling price situation?
A
Standard price
B
Market price
C
FIFO
D
Average method
E
Q36
This closing stock on March 11th by LIFO valuation is
A
₦4,200
B
₦2,700
C
₦4,500
D
₦3,900
E
Q37
The value of closing stock as at February 14th by simple average method is
A
₦3900
B
₦2500
C
₦4100
D
₦2700
E
Q38
If the gross profit is ₦66 000, what is the value of stock at 31st December?
A
₦30,000
B
₦40,000
C
₦50,000
D
₦20,000
E
Q39
What is the stock valuation method used?
A
Average cost
B
Weighted average
C
First In First Out
D
Last In First Out
E
Q40
The value x is
A
6.00
B
5.50
C
5.00
D
4.00
E
Q41
What is the closing stock for the period?
A
₦69,300
B
₦81,300
C
₦81,600
D
₦106,400
E
Q42
The understatement of closing value of work-in-process would have the effect of
A
understanding cost of goods manufactured
B
overstating prime cost of goods manufactured
C
overstating cost of goods manufactured
D
understanding prime cost of goods manufactured
E
Q43
Which of the following stock valuation methods is suitable under inflationary conditions?
A
FIFO
B
LIFO
C
Simple average
D
Weighted average
E
Q44
Compute the average amount of stock in hand at cost price
A
₦3 860
B
₦3 806
C
₦3 680
D
₦3 086
E
Q45
What is the cost of goods sold?
A
₦3,000
B
₦25,000
C
₦20,000
D
₦15,000
E
Q46
Using LIFO, determine the value of closing stock
A
₦9,600
B
₦7,600
C
₦6,000
D
₦2,000
E
Q47
What is the gross profit at the end of February, if the closing stock were valued at ₦20,000
A
₦65,000
B
₦57,000
C
₦48,000
D
₦37,000
E
Q48
Using the FIFO method of stock valuation, the ending inventory cost is
A
₦146
B
₦165
C
₦186
D
₦314
E
Q49
Using LIFO inventory procedures, the ending inventory cost is
A
₦136
B
₦176
C
₦196
D
₦264
E