Closing Stock lying unsold with the consignee is valued at-
A)Cost Price .
B)Market Price .
C)Realizable Price .
D)Least of cost or net realizable value

Question

Quizplus · Accepted Answer

Closing stock is valued at the lower of cost or net realizable value to ensure that the inventory is not overstated on the balance sheet. This accounting principle is known as the lower of cost or market rule, which helps in reflecting the actual economic value of the inventory.

Closing Stock Lying Unsold with the Consignee Is Valued At-