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JAMB Principles of Accounts 2010 Question 19

Question 19

Stock Valuation

If an organization maintains a periodic stock system, the stock quantities are

  1. A.updated at the end of the accounting year
  2. B.not considered in the updating process
  3. C.updated continuously
  4. D.updated at the beginning of the accounting year.
Show the answer and explanation

Answer: A (updated at the end of the accounting year)

Explanation

Under the periodic system stock is counted and updated only at the end of the period.