A-LevelAccountingFinancial reporting and ethical considerations9706/12 · Oct/Nov 2012 · Q71 Mark

Inventory is valued at the lower of cost and net realisable value. Which accounting principle is being applied?

Agoing concern

Bmatching

Cmateriality

Dprudence

✓ Correct answer

D: prudence

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Topic: Financial reporting and ethical considerations, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2012 Paper 1 Variant 2, question 7.

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