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Commerce · Q413

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Graduate and Post Graduate · Commerce · question 413

Q413

Which of the following will not lead to creation of secret reserve?

A.
Undervaluation of closing stock
B.
Charging capital expenditure to revenue
C.
Goods sent on consignment being shown as actual sales
Answer
D.
Charging higher rates of depreciation on fixed assets than actually required

Answer: Option C

Solution

Answer: Option C
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