Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

What will be the closing inventory of the company if its opening inventory is 10% of the cost of revenue from operations(₹640000) and the closing inventory is 4 times of opening inventory?

Options:

₹250000

₹256000

₹274000

₹270000

Correct Answer:

₹256000

Explanation:

Opening inventory= 640000 X 10/100 = ₹64000
Closing inventory = 64000 X 4 = ₹256000