With regards to inventory which of the following would be classed as conservative accounting?

Question

Quizplus · Accepted Answer

Applying the lower of cost and net realisable value rule consistently and quickly is a conservative approach as it results in a lower valuation of inventory and thus a lower net income. This approach is considered conservative because it results in a more cautious approach to valuing inventory, which could protect a company from potential losses. The other options (A, B, and D) are all examples of aggressive accounting practices that would result in an overvaluation of inventory and potentially inflate a company's net income.

With Regards to Inventory Which of the Following Would Be