Question on: JAMB Accounting - 2022
The stock valuation data is important because it enables management to?
A
separate debtors from creditors
B
determine the cost of stock at the end of business
C
determine the cost of stock at the beginning of business
D
determine the total cost of goods purchased
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Correct Option: B
The stock valuation data is important because it enables management to determine the cost of stock at the end of the business. Stock valuation involves assessing the value of the inventory or stock held by a business at a specific point in time. This information is crucial for financial reporting, as it allows management to accurately calculate the cost of goods sold (COGS) and the value of the remaining stock.
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