A Specific Exception to the Use of Historical Cost to Value

question 66

Multiple Choice

A specific exception to the use of historical cost to value assets is if the net realisable value of inventories falls below cost. In this case the justification for the use of market value rather than cost relies on the:

• A)materiality principle.
• B)comparability principle.
• C)cost versus benefit principle.
• D)conservatism principle.

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Definitions:

Contingency Table

A table used in statistics to show the frequency distribution of variables, and analyze the relationship between categorical variables.

Qualitative Variables

Variables that categorize or describe attributes or properties of objects, individuals, or conditions, without using numerical values.

Contingency Table

A table used in statistics to display the frequency distribution of variables, helping in analyzing the relationship between different categorical variables.

Frequency of Occurrence

The rate at which a particular event or outcome happens within a specific interval of time or within a given data set.