Question

The lower-of-cost -or market rule is an example of:

Answer 1

(A) Matching

(B) Consistency

(C) Conservatism

(D) Going concern

Answer (C): Conservatism

Explanation: The conservatism concept is an idea in bookkeeping that alludes to the possibility that costs and liabilities ought to be recorded or recognised quickly in a circumstance where there is a vulnerability about the conceivable result and conversely, record resources and incomes just when they are guaranteed to be gotten.