JAMB Accounting 2008 Objective — Question 22

Question 22 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2008 Objective paper, with the correct answer and a full explanation.

In a period of inflation, which of the following methods normally gives a closing stock value very close to the market value?

A. FIFOCorrect
B. LIFO
C. Simple average
D. Periodic Simple Average

Explanation

Since the first stock will be sold first, the last stock will close to market value during inflation.

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