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Closing stock is valued at lower of cost or relisable value.identify the principle and explain it?
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Closing stock is valued at lower of cost or relisable value.identify t...
The principle used is conservatism or prudence. This principle states that the entity has to take into account the probable losses and ignore the probable gains.
Hence the closing stock or inventory is valued at lower of cost or realisable value.
Cost= The actual amount paid to purchase the stock
Realisable value= The amount that can be realised by selling the same stock without processing.
Hence inventory will be lower of the both by considering the prudence principle used for the preparation of financial statements.
Hence the closing stock or inventory is valued at lower of cost or realisable value.
Cost= The actual amount paid to purchase the stock
Realisable value= The amount that can be realised by selling the same stock without processing.
Hence inventory will be lower of the both by considering the prudence principle used for the preparation of financial statements.
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Closing stock is valued at lower of cost or relisable value.identify the principle and explain it?
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Closing stock is valued at lower of cost or relisable value.identify the principle and explain it? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Closing stock is valued at lower of cost or relisable value.identify the principle and explain it? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Closing stock is valued at lower of cost or relisable value.identify the principle and explain it?.
Closing stock is valued at lower of cost or relisable value.identify the principle and explain it? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Closing stock is valued at lower of cost or relisable value.identify the principle and explain it? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Closing stock is valued at lower of cost or relisable value.identify the principle and explain it?.
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