Closing Stock Is Always Valued At Market Price. (True/False)

True

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False

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Solution

The correct option is B False
Closing stock is always valued at cost price or market price whichever is less. It is based on the principle of Conservatism.

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Similar questions

What should we do to find out the closing stock when the following information is given :-

Closing stock was valued at Rs 25,000. (Market value Rs. 15,700)

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