Accounting Question
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Stock is to be valued at cost or net realizable value which every is lower.
Prudence concepts says that if there is a loss in future , book it in book of accounts and if there is a profit in future , wait for the time for profit to get accrued.
When product are different in nature , then lower of cost or market value should be applied on product to product basis and not on total value basis.
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