value of closing stock at actual cost price or market price whichever

1.	value of closing stock at actual cost price or market price whichever is lower is an example of qhich accounting convention? explain
Answer» Convention of CONSERVATISM In accounting, the convention of conservatism, ALSO known as the doctrine of prudence, is a policy of anticipating possible future losses but not future gains. This policy tends to understate rather than overstate net ASSETS and net INCOME, and therefore lead companies to . When given a choice between several outcomes where the probabilities of occurrence are equally likely, you should RECOGNIZE that transaction resulting in the lower amount of profit, or at least the deferral of a profit

value of closing stock at actual cost price or market price whichever is lower is an example of qhich accounting convention? explain

Answer»

In accounting, the convention of conservatism, ALSO known as the doctrine of prudence, is a policy of anticipating possible future losses but not future gains. This policy tends to understate rather than overstate net ASSETS and net INCOME, and therefore lead companies to . When given a choice between several outcomes where the probabilities of occurrence are equally likely, you should RECOGNIZE that transaction resulting in the lower amount of profit, or at least the deferral of a profit

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