1. Inventories are stocks of goods and materials that are maintained for mainly the purpose of revenue generation.
A) True ✓
B) False
CA Foundation Paper 1
Inventories MCQ
Chapter 4 • 32 Questions from ICAI Study Material
Questions
32
Est. Time
24 min
Source
ICAI Book
Question 1 of 32 0 correct | 0 wrong
Why this is correct:
Common Mistake:
Key Concept:
Exam Tip:
Keyboard: 1-4 to select, ← → to navigate
Sample Questions: Inventories
Preview 8 of 32 MCQs from Chapter 4
2. A building is considered inventory in a construction business.
A) True ✓
B) False
3. Inventory is valued as carrying cost less percentage decreases.
A) True
B) False ✓
4. Management has daily information about the quantity and valuation of closing stock under physical Inventory System.
A) True
B) False ✓
5. Periodic Inventory System is more suitable for small enterprises.
A) True ✓
B) False
6. When closing inventory is overstated, net income for the accounting period will be understated.
A) True
B) False ✓
7. Closing inventory = Opening inventory + Purchases + Direct expenses + Cost of goods sold.
A) True
B) False ✓
8. Cost of inventories should comprise all cost of purchase.
A) True
B) False ✓