The lower-of-cost-or-net realizable value basis is an example of the accounting concept of conservatism.

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This statement is true. The lower-of-cost-or-net realizable value basis is an application of the conservatism concept, which holds that when faced with uncertainty or doubt, an accountant should select the alternative that results in the least favorable outcome for the entity. In the case of inventory valuation, the lower-of-cost-or-net realizable value basis ensures that inventory is not carried on the balance sheet at a value higher than what it can be sold for. This conservative approach helps to avoid overstatement of assets and income, which promotes more accurate financial reporting.

The Lower-Of-Cost-Or-Net Realizable Value Basis Is an Example of the Accounting