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JAMB Principles of Accounts 2013 Question 18

Question 18

Stock Valuation

What type of stock valuation method would a vegetable seller adopt in valuing it's product?

  1. A.LIFO.
  2. B.FIFO.
  3. C.Simple average.
  4. D.Weighted average.
Show the answer and explanation

Answer: B (FIFO.)

Explanation

Vegetables spoil, so the oldest must be sold first: first in, first out.