The Lower-Of-Cost-Or-Market Rule Implies That It Is a Violation of the Conservatism

question 162

True/False

The lower-of-cost-or-market rule implies that it is a violation of the conservatism concept to carry inventory at a cost that is in excess of its market value.

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Definitions:

Ambiguity

The presence of vagueness or uncertainty in meaning, often found in language, text, or legislation, leading to multiple possible interpretations.

Devise

In a will, a gift of real property.

Real Property

Property that includes the soil and any permanently bound fixtures to it, like constructions and arboreal elements.

Bequest

A gift left to someone in a will.