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Thursday, 01 October 2026
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Accounts - Principles of Accounts Past Questions and Answers

Topic: Stock Valuation

Jamb Accounts - Principles of Accounts Questions - Stock Valuation

Question 1:
I. A retailer when fixing his selling price adds one-quarter to the cost of the article
II. The expenses of the retailer is 10% of his sales
III. The total sales is N23,000
IV. he turned over his stock five times in the year.
Compute the average amount of stock in hand at cost price
  • A N3,860
  • B N3,806
  • C N3,680
  • D N3,086
View Answer & Explanation
Question 2:
I. A retailer when fixing his selling price adds one-quarter to the cost of the article
II. The expenses of the retailer is 10% of his sales
III. The total sales is N23,000
IV. he turned over his stock five times in the year.
The net profit for the year is
  • A N5,750
  • B N5,650
  • C N3,200
  • D N2,300
View Answer & Explanation
Question 3:
Which of the following stock valuation methods is suitable under inflationary conditions?
  • A FIFO
  • B LIFO
  • C Simple average
  • D Weighted average
View Answer & Explanation
Question 4:
The understatement of closing value of work-in-process would have the effect of?
  • A Understating cost of goods manufactured
  • B Overstating prime cost of manufactured
  • C Overstating cost of goods manufactured
  • D Undersating prime cost of goods manufactured
View Answer & Explanation
Question 5:
A pottery company had sales of N176,000 during the current period and a gross profit rate of 40%.
The company's cost of merchandize available for sale during the period was N128,000. The company's ending inventory is?
  • A N22,400
  • B N32,000
  • C N51,200
  • D N76,800
View Answer & Explanation