CA CPT Model Test Paper 7 with solutions for online practice

Question : 10 of 200

Marks: +1, -0

M/s Omega Brothers, which was registered in the year 2000, has been following LIFO method for valuation of shares. In the current year it changed its method from LIFO to FIFO Method in the year 2005. The auditor raised objection to this change in the method of valuation of investments. The objection of the auditor is justified because

Change in the method should be done only with the consent of the auditor
Method can be changed only from FIFO to LIFO and not vice versa
Change in the method should be done only if it is required by some statute and change would result in appropriate presentation of financial statement
Method cannot be changed under any circumstances.

Validate

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