What is the rule,which requires a business to realign the books when it finds itself in a situation where the book value of inventory is greater than its market value?

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The rule that requires a business to realign the books when the book value of inventory is greater than its market value is the "lower of cost or market" rule. This means that the inventory must be recorded at the lower value of either its cost or its market value. This adjustment is necessary to ensure that the inventory is stated at its true economic value on the balance sheet.

What Is the Rule,which Requires a Business to Realign the Books