Question

As per which principle of accounting closing stock is valued at cost price or at market price which ever is less answer in one sentence only

Answer 1

Explanation:

Using principle of prudence, valuation of closing stock is done by taking market price or cost whichever is lower. So, if market price of closing stcok is also known while preparing consignment account, closing stock is to be valued at cost or market price, whichever is lower.