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  • Theoretical Framework of Accounting
  • Closing stock at the end of the year should be valued at
Multiple choice

Closing stock at the end of the year should be valued at

  1. cost price only

  2. market price only

  3. cost price or market price whichever is lower

  4. cost price or market price whichever is higher

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The closing stock should be valued at cost price or market price whichever is lower. It is as per concept of conservatism.

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