Question

А
Q25. At what value is stock stated in a company's Balance Sheet?
*cost price
*net realisable value
*the greater of net realisable value or cost price
*the lower of net realisable value or cost price

What’s the answer from above 4 options and why is that’s so do explain please

Answer 1

ANSwer is the lower value of net realisable value or cost price.

because we do not anticipate profits but records all expected losses.

topic: principles of accounting

hope this will help you