JAMB Accounting 2009 Objective — Question 22

Question 22 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2009 Objective paper, with the correct answer and a full explanation.

22. Which of the following methods gives a conservative closing stock value during a period of rising prices?

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

Explanation

FIFO gives a conservative (lower, reflecting older/cheaper cost) closing stock value during a period of inflation, per the source key.

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