In financial statement the stock is valued at cost or market price whichever is less on the basis of…
A)accounting concepts
B)accounting conventions
C)accounting principles
D)none of the above

Question

Quizplus · Accepted Answer

The principle of valuing stock at cost or market price, whichever is less, is based on the accounting convention of conservatism. This convention advises caution and suggests reporting the least favorable figures among the options to avoid overstating assets or income.

In Financial Statement the Stock Is Valued at Cost or Market