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O-LevelAccountingAccounting principles and policies7707/12 · Oct/Nov 2018 · Q291 Mark

A business values its inventory at the lower of cost and net realisable value. Which accounting principle is being applied?

Aaccounting entity
Bdual aspect
Cmoney measurement
Dprudence

✓ Correct answer

D: prudence

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About this question

Topic
Accounting principles and policies, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source
O-Level Accounting, Oct/Nov 2018 Paper 1 Variant 2, question 29.

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