The Practice of Using the Lower-Of-Cost-Or-Market to Evaluate Inventory Reflects

question 135

Multiple Choice

The practice of using the lower-of-cost-or-market to evaluate inventory reflects which of the following accounting principles?

• A)Matching principle.
• B)Revenue recognition.
• C)Conservatism.
• D)Materiality.

---

Definitions:

CICA Handbook

A comprehensive guide published by the Canadian Institute of Chartered Accountants providing accounting standards, guidelines, and procedures.

NFP

Stands for Not-For-Profit, referring to organizations that operate for purposes other than generating profit for owners or shareholders, focusing instead on charitable, educational, or social objectives.

ASPE

Accounting Standards for Private Enterprises, a set of Canadian accounting guidelines for privately owned businesses, providing simpler alternatives to IFRS.

CICA Handbook

The Canadian Institute of Chartered Accountants Handbook, containing standards and guidelines for accounting and auditing practices in Canada.