首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
Valuation of stock prorides the most common form of description. Stock is generally valued at cost or market value, whichever is
Valuation of stock prorides the most common form of description. Stock is generally valued at cost or market value, whichever is
admin
2013-12-25
12
问题
Valuation of stock prorides the most common form of description. Stock is generally valued at cost or market value, whichever is the lower, as otherwise profit is shown which may never materialize. It is no more than prudent to err on the side of caution, as some stock may deteriorate or, in the course of time, become unsaleable, and care should be taken to see that in no event must there be an overvaluation.
Naturally an undervaluation of closing stock keeps down the profit and, of course, the tax payable of such profit. The closing stock of the first year becomes the opening stock of the second year, and, if the stock has been greatly undervalued, then the closing stock of the second year will have to be very greatly undervalued if a similar gross profit ratio is to be shown for both years. For example , if stock at the close of the first year is undervalued by £ 1 ,000, the profit will likewise be kept down by £ 1,000. In the second year, if both the opening and closing stock are undervalued by £ 1 ,000, the profit will be unaffected and will be the actual profit earned. If it is desired to make the profit £ 1 ,000 less than actual, in line with the first year, then the closing stock will have to be undervalued by another £ 1 ,000, making the stock evaluation £ 2,000 less than it actually is. The proprietor’s problems are only just beginning, because, to keep the same ratio of gross profit to sales, the stock will have to be undervalued more and more each year and the build-up will mean that in the course of time too much stock will be held in the business and the proprietor will not know what to do with it. If the excess is sold against cheques, the cheques will show in a banking account; it is not easy to sell bulk stock for cash at its full market value. As so many people have found, undervaluation of stock causes a great deal of difficulty.
In the present instance, it is not any help for the customer to say that his stock is worth £ 42, 000 unless it is his intention to restrict purchases and bring the excess stock back into the account and therefore increase his profit and his tax. By comparing the gross profit ratio over a few years and by careful questioning, it should be fairly straightforward for a banker to judge the true position a-bout customer’ s stock valuation methods, and to consider if they alter in substance the trading figures produced.
Stock is measured______in order to give a true picture of profit.
选项
A、at cost value
B、at market value
C、at cost or market value, whichever is lower
D、at cost or market value, whichever is higher
答案
C
解析
文章第一段提到Stock is generally valued…which may never materialize。存货价值是按照成本与市场价格孰低法(at cost or market value,whichever is the lower)进行估算的,这样可以获得一个较为真实的利润水平。
转载请注明原文地址:https://kaotiyun.com/show/TGid777K
本试题收录于:
FECT综合(现代金融业务)题库金融英语(FECT)分类
0
FECT综合(现代金融业务)
金融英语(FECT)
相关试题推荐
情景:你是李明,你的朋友Tom暑假要来你所在的城市参观,你需要告诉他你的住址和他来时的乘车路线。任务:请你用英语给Tom写一封50词左右的信,告诉他:你住在北京市中关村南大街601号;从北京西站乘320路公
Anewyoungteacherhasjustbegunherwork.Inthefirstdayofschool,aftershereadthelist(名单)ofstudentsinherclass
We’veallhadworkanddothingsthatwedidnotenjoy.Usually,somepeoplewouldtellustobe【C1】______enthusiastic(热情的)."Yo
InBritain,highschoolstudentscanrunabusiness!Eachbusinessrunsforoneyear.Whentheystarttheirbusiness,theyborro
Mrs.Joneswaspoor.Shedidn’thave______money.
情景:你是李明,你的朋友Tom暑假要来你所在的城市参观,你需要告诉他你的住址和他来时的乘车路线。任务:请你用英语给Tom写一封50词左右的信,告诉他:你住在北京市中关村南大街601号;从北京西站乘320路公
Whenyouareinvitedtoattendapartyinthewest,thefirstimportantthingyouneedtoknowisarrivinglate.Itisagre
Itusedtobethatifyouwantedtotravel,youhadtoplanforalongbusortrainride.Butthecarchangedallthat.Thougha
BufordisthesmallesttownintheUS.ThetownishighinthemountainsanditliesontheroadbetweenNewYorkandCalifornia
A&DLtd.providesyouwiththefollowinginformationforthetwoyearsended31Decemberyears2002and2003.BalanceSheeten
随机试题
请为某公司设计职工薪酬表。
超声检查先天性心脏病动脉导管未闭常用的切面有
影响微囊药物释放速率的因素说法错误的是
喘证的治疗,以下哪些正确
t检验中P<0.05,统计上可以认为
以下关于动产物权的交付管理,正确的有()。
从本质上看,国际信用是()的一种形式。
莫言是第一个获得诺贝尔文学奖的中国作家,他在自己的小说里大量运用了意识流的手法,包括内心独白、多视角叙事、慢镜头描写、意象比喻、自由联想等。(、)
党的十九大报告提出“开启全面建设社会主义现代化国家新征程”。下列关于“社会主义现代化”表述不准确的是:
Ilikethissong______youropinion.
最新回复
(
0
)