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Functions of Money

Valuing the s...

Question

Valuing the stock in trade at market price or cost price which is less is an example of the convention of _______.

A

Consistency

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B

Disclosure

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C

Knowing the value

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D

None of the Above

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Solution

The correct option is D None of the Above
Stock valuation on market price or cost price whichever is less based on the "conservatism concept", which defines that all expected losses should be recorded in books of account.

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