A Specific Exception to the Use of Historical Cost to Value

question 76

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

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