Question

fill in the blank
1.purchase refers to the buying of good for _____
2.IASB upon coming into existence has adopted all _____and_____.
3.stock is valued at cost or net realisation value( market value),whichever is______
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Answer 1

ANSWER :

[1] Purchase refers to the buying of good for resale.

• In case of a business firm, the term "Purchase" means buying of goods that are meant for resale by the firm.

• Purchase doesn't include the purchase of fixed assets.

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[2] IASB upon coming into existence has adopted all IAS and SIC.

• Full form of IASB : International Accounting Standards Board.
• Full form of IAS : Indian Accounting Standard.
• Full form of SIC : Standard Interpretations Committee.

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[3] Stock is valued at cost or net realisation value( market value), whichever is lower.

• While the valuation of stock, either the cost or net realisation value is considered. Stock is valued at either cost or net realisation value (market value whatever is lower.