MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Expense Side of Statement of Profit and Loss

The following...

Question

The following cost basis should be used to value inventory for external financial reporting.

A

Historical cost

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

B

Standard cost

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Normal cost

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

Applied cost

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A Historical cost
A historical cost is a measure of value used in accounting in which the value of an asset on the balance sheet is recorded at its original cost when acquired by the company.

Suggest Corrections

thumbs-up

0

Similar questions

Q. As per AS-2, the historical cost of manufactured inventories should be arrived at on the basis of __________________.

Q. Normally, historical cost of inventories should not be determined by _______________.

Q. Fixed assets are reported in the balance sheet at historical cost basis. This is done in order to comply with _________.

Q. In Materials Requirement Planning, if the inventory holding cost is very high and the setup cost is zero, which one of the following lot sizing approaches should be used?

Q. The accounting policy for inventory of an enterprise discloses that inventories are valued at lower of cost determined on weighted average basis or net realizable value, is the application of _________ concept.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Statement of Profit and Loss

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Expense Side of Statement of Profit and Loss

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon