Question

Closing Stock is valued at cost or Net Realisable value (Market Value), whichever is less
because of
(a) Going concern concept
(b) Accural Concept
(e) Prudence Concept
(d) Consistency Concept.​

Answer 1

Answer:

Prudence Concept

Explanation:

The prudence concept states that expenses and losses should not be underestimated and profits and gains should not be overestimated.

This is so that proits are not overstated and a true and fair image of the business is presented in the books of accounts.

Answer 2

Prudence Concept

Option E is correct

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