In the period of rising prices, which method of stock valuation is most appropriate?

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Accounts - Principles of Accounts JAMB 2017

In the period of rising prices, which method of stock valuation is most appropriate?

  • Last in First Out checkmark
  • weighted average
  • First in First Out
  • Simple average

The correct answer is: A

Explanation

Last in first out:when price rise it results to lower bet income because the leftover inventory might be extremely old and perhaps obsolete
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