Q141
Using 'lower of cost and net realisable value' for the purpose of inventory valuation is the implementation of which of the following concepts?
A.
The going concern concept
B.
The separate entity concept
C.
The prudence concept
AnswerD.
Matching concept
Answer: Option C
Solution
Answer: Option C
Solution:
A cash book with cash bank and discount column is commonly referred as The prudence concept. Under the prudence concept, do not overestimate the amount of revenues recognized or underestimate the amount of expenses.