In general, it is argued that the lower of cost or market rule is supported most closely by which of the following theoretical assumptions?

Question

Quizplus · Accepted Answer

The lower of cost or market rule is most closely supported by the principle of representational faithfulness, as it ensures that the financial statements accurately reflect the value of inventory at the lower of its historical cost or current market value, providing a true representation of the company's financial position.

In General, It Is Argued That the Lower of Cost