GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If no information is available, the General Rule for valuation of stock for balance sheet is
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Standard Cost
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Historical Cost
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Realizable Value
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Replacement Cost
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Explanation:
Detailed explanation-1: -Historical cost is a measure of value used in accounting in which the price of of stock on the balance sheet is based on its nominal or original cost when acquired by the company. Was this answer helpful?
Detailed explanation-2: -Answer. valuation of stock in accounting follow the principle of cost price or realisable value whichever is lower.
Detailed explanation-3: -Inventory valuation is an accounting practice that is followed by companies to find out the value of unsold inventory stock at the time they are preparing their financial statements. Inventory stock is an asset for an organization, and to record it in the balance sheet, it needs to have a financial value.
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