A-LevelAccountingThe accounting cycle9706/12 · Feb/Mar 2021 · Q11 Mark

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

Abusiness entity

Bduality

Cmatching

Dprudence

✓ Correct answer

D: prudence

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Topic: The accounting cycle, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2021 Paper 1 Variant 2, question 1.

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