Question: AS- 2 is on: a) Disclosure of Accounting Policies b) Valuation of Inventories c) Revenue Recognition d) Depreciation Accounting
Answer: (b) Description: AS- 2 issued by ISAI is on "Valuation of Inventories" and was revised in 1999. As per the standard, the cost of inventories should comprise costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Inventory is valued by following conservatism principle i.e. at lower of the cost or the market price.
Question:
AS- 2 is on: a) Disclosure of Accounting Policies b) Valuation of Inventories c) Revenue Recognition d) Depreciation Accounting Answer:
(b) Description: AS- 2 issued by ISAI is on "Valuation of Inventories" and was revised in 1999. As per the standard, the cost of inventories should comprise costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Inventory is valued by following conservatism principle i.e. at lower of the cost or the market price. Source: CoolInterview.com
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