The importance of stock valuation - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 1:

• JAMB 1994

The term "accounting period" is used to refer to the

A. Time span during which taxes are paid to the inland revenue board
B. Budget period, usually one year, relied on by the accountant
C. Time span, usually one year, covered by financial statement
D. Period within which debtors are expected to settle accounts

Question 2:

• JAMB 2003

The stock valuation data is important because it enables management to?

A. Separate 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