NCERT · Class 11 · Accountancy · Financial Statements - IClosing stock is valued at:
Step-by-Step Solution
According to accounting standards, closing stock is valued at cost price or net realizable value (market value), whichever is less.
Detailed Options Breakdown
Option : Cost price only
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - I.
Option 1: Market price only
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - I.
Option 2: Cost price or net realizable value, whichever is less (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 3: Cost price or market price, whichever is higher
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Financial Statements - I.
💡 Study Guide: This question tests core syllabus concepts from Financial Statements - I. For formulas, key summaries, and mock exam reference guides, read the full Financial Statements - I Revision Notes.