Question

Valuation of inventories is governed by *

a) Companies Act

b) Accounting Standard 2 by the ICAI

c) Income tax Act

d) Accounting Standard 6 by the ICAI

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Answer 1

Answer:

c................

Step-by-step explanation:

..........

Answer 2

The correct answer for the given question is option a: The Companies Act

• According to the Companies Act for a valuation of any property, stocks, shares, debentures, securities, or goodwill, any other asset or net worth of a company (also includes inventories as part of assets) comes under its ambit. 
• The ICAI's accounting standard acts address adherence to accounting and auditing standards.
• The Income Tax Act deals with the purview of taxable incomes under various classifications.