首页
登录
职称英语
Valuation of stock prorides the most common form of description. Stock is ge
Valuation of stock prorides the most common form of description. Stock is ge
游客
2025-06-20
15
管理
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 about customer’s stock valuation methods, and to consider if they alter in substance the trading figures produced. [br] Undervaluation of closing stock may lead to ______.
选项
A、higher profit than actual
B、less profit than actual
C、higher tax payable
D、none of the above
答案
B
解析
文章第二段提到Naturally an undervaluation...the tax payable of such profit.低估存货的期末价值会导致账面利润少于实际利润,因而可以少交纳税款。
转载请注明原文地址:https://tihaiku.com/zcyy/4126615.html
相关试题推荐
Theconceptof______isbasedonthecommon-sensenotionthatadollarpaidtoyo
Valuationofstockproridesthemostcommonformofdescription.Stockisge
Valuationofstockproridesthemostcommonformofdescription.Stockisge
Securityisrequiredonloansforseveralreasons.Oneofthemostcommonis
Securityisrequiredonloansforseveralreasons.Oneofthemostcommonis
Securityisrequiredonloansforseveralreasons.Oneofthemostcommonis
Securityisrequiredonloansforseveralreasons.Oneofthemostcommonis
______refertothecommonsharesissuedbythecompaniesregisteredinChina’s
[originaltext]It’snosecretthatthroughouthistorycommonstockhasoutpe
[originaltext]Morecommonforlendingtransactionstodayiscompoundinterest.[
随机试题
Onecalledherbossa"bitchfromhell"whileanotheradmitted"lyingthrou
Sciencetothehumanmindis______.(正如水或空气之于身体).whatairorwateristothebod
明洞拱圈外模拆除、拱圈混凝土达到设计强度的()后,应及时按设计规范要求施作防水
消防机构对某大型地下商业建筑进行防火检查时,发现下沉式广场的下列做法中,不符合规
A.与乙酰胆碱争夺M型受体 B.与乙酰胆碱争夺N型受体 C.抑制乙酰胆碱的作
关于收缩性心力衰竭的主要临床特点,下列哪项不正确A.心室收缩末期容量减少 B.
学生一次考试没考好,心情失落,怎么办?
在质量管理体系审核活动中,审核的启动包括的步骤有()。 A.指定审核组
培训需求分析的绩效差距分析方法,也称()。A.效果分析 B.必要性分析
招标投标行政监督部门中的指导协调部门是()。A.国务院发展改革部门B.国务院
最新回复
(
0
)