The practice of using the lower-of-cost-or-market to evaluate inventory reflects which of the following accounting principles?

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The lower-of-cost-or-market principle is a conservative approach that requires companies to record inventory at its net realizable value (market value) when it is lower than its cost. This principle is based on the conservatism principle in accounting, which requires accountants to be cautious when reporting financial information and to choose the option that is least likely to overstate assets or income.

The Practice of Using the Lower-Of-Cost-Or-Market to Evaluate Inventory Reflects