Stock Valuation Generix Content - Stock Valuation
"Stock Valuation" question number distribution across years
Search "Stock Valuation" on the following sites online
Financial Accounting index on skoool nigeria

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
&#8358;10 000
B
&#8358;90 000
C
&#8358;105 600
D
&#8358;110 000
E
Q2
If the opening stock is 5% of sales, calculate the purchases.
A
&#8358;95 600
B
&#8358;95 000
C
&#8358;90 600
D
&#8358;85 000
E
Q3
Determine the capital of the business
A
&#8358;9 400
B
&#8358;6 000
C
&#8358;3 400
D
&#8358;3 000
E
Q4
What is the net working capital?
A
&#8358;2 600
B
&#8358;1 800
C
&#8358;800
D
&#8358;600
E
Q5
Using FIFO method, what is the value of the closing stock?
A
&#8358;34 000
B
&#8358;29 000
C
&#8358;17 000
D
&#8358;12 000
E
Q6
What is the value of closing stock using simple average?
A
&#8358;11 500
B
&#8358;17 000
C
&#8358;17 500
D
&#8358;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
&#8358;76 800
B
&#8358;67 800
C
&#8358;14 100
D
&#8358;11 400
E
Q9
Using the simple average method, what is the cost per unit of the closing stock?
A
&#8358;80
B
&#8358;74
C
&#8358;64
D
&#8358;60
E
Q10
Using the FIFO method, what is the value of the closing stock?
A
&#8358;1 280
B
&#8358;1 184
C
&#8358;1 024
D
&#8358;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
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 &#8358;19,000 at the end of November, what was the gross profit?
A
&#8358;30,000
B
&#8358;50,000
C
&#8358;70,000
D
&#8358;100,000
E
Q17
Determine the value of closing stock using the LIFO method
A
&#8358;2,000
B
&#8358;2,500
C
&#8358;4,000
D
&#8358;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
&#8358;11,500
B
&#8358;8,500
C
&#8358;13,000
D
&#8358;10,000
E
Q20
Determine the closing stock
A
&#8358;50000
B
&#8358;20000
C
&#8358;30000
D
&#8358;40000
E
Q21
Determine the closing stock under LIFO method
A
&#8358;375
B
&#8358;575
C
&#8358;275
D
&#8358;500
E
Q22
Calculate the closing stock under FIFO method
A
&#8358;300
B
&#8358;600
C
&#8358;875
D
&#8358;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 &#8358;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
&#8358;240
B
&#8358;250
C
&#8358;150
D
&#8358;160
E
Q28
What is the value of raw materials issued on May 17th based on the FIFO method?
A
&#8358;62
B
&#8358;64
C
&#8358;61
D
&#8358;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
&#8358;4,000
B
&#8358;3,000
C
&#8358;2,000
D
&#8358;1,000
E
Q32
A
&#8358;71,050
B
&#8358;68,250
C
&#8358;67,970
D
&#8358;66,080
E
Q33
The closing stock for this company is
A
&#8358;72,000
B
&#8358;16,168
C
&#8358;42,500
D
&#8358;31,250
E
Q34
Calculate the cost of goods credited to the head office trading account
A
&#8358;7,660
B
&#8358;7,500
C
&#8358;7,460
D
&#8358;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
&#8358;4,200
B
&#8358;2,700
C
&#8358;4,500
D
&#8358;3,900
E
Q37
The value of closing stock as at February 14th by simple average method is
A
&#8358;3900
B
&#8358;2500
C
&#8358;4100
D
&#8358;2700
E
Q38
If the gross profit is &#8358;66 000, what is the value of stock at 31st December?
A
&#8358;30,000
B
&#8358;40,000
C
&#8358;50,000
D
&#8358;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
&#8358;69,300
B
&#8358;81,300
C
&#8358;81,600
D
&#8358;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
&#8358;3 860
B
&#8358;3 806
C
&#8358;3 680
D
&#8358;3 086
E
Q45
What is the cost of goods sold?
A
&#8358;3,000
B
&#8358;25,000
C
&#8358;20,000
D
&#8358;15,000
E
Q46
Using LIFO, determine the value of closing stock
A
&#8358;9,600
B
&#8358;7,600
C
&#8358;6,000
D
&#8358;2,000
E
Q47
What is the gross profit at the end of February, if the closing stock were valued at &#8358;20,000
A
&#8358;65,000
B
&#8358;57,000
C
&#8358;48,000
D
&#8358;37,000
E
Q48
Using the FIFO method of stock valuation, the ending inventory cost is
A
&#8358;146
B
&#8358;165
C
&#8358;186
D
&#8358;314
E
Q49
Using LIFO inventory procedures, the ending inventory cost is
A
&#8358;136
B
&#8358;176
C
&#8358;196
D
&#8358;264
E