Cameroon GCE O-Level Accounting Practice Questions - Cameroon General Certificate Of Education Ordinary Level - Accounting Principles Of Accounts (0505) Exam

According to the prudence (conservatism) concept, how should closing inventory be valued in the final accounts?

At the highest projected future selling price in the retail market. At the lower of cost and net realisable value. At the historical purchase invoice cost without adjusting for damage or obsolescence. At the replacement purchase price from wholesale suppliers.

Correct Answer:

At the lower of cost and net realisable value.

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