Question

Purchases = Rs. 25,00,000 70% of the goods are sold Closing inventory is valued at Rs. 5,00,000 instead of at Rs. 7,50,000. Which concept has been followed? (a) Conservatism (b) Cost (c) Accrual (d) Matching

Answer 1

Answer:

it is (a)conservatism

acc. to which recognize all anticipated losses but not profits.