Which of the following principles are reflected in the lower-of-cost-or-market rule?

Question

Quizplus · Accepted Answer

The lower-of-cost-or-market rule is based on the principle of accounting conservatism, which calls for a cautious approach in financial reporting by recognizing losses and liabilities as soon as possible. This principle ensures that financial statements are not overstated and provide a realistic picture of the company's financial position. The materiality concept, disclosure principle, and consistency principle are other important accounting principles but are not directly related to the lower-of-cost-or-market rule.

Which of the Following Principles Are Reflected in the Lower-Of-Cost-Or-Market