Accounting for IGCSE & O level - Final Statements (Section 5 - No. 42)
Which accounting principle is being applied by valuing inventories at the lower of their cost or net realisable value?
Going concern
Materiality
Conservatism
Consistency
Erläuterung
Valuing inventories at the lower of cost or net realizable value is an example of applying the conservatism principle.