Explain inventories should be included in accounts

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Reference no: EM132646378

Valuation of inventory required

Question 1: the idea that inventory should be included in financial statements at the lower of historical cost and net realizable value follows the prudence convention but not the consistency convention . Do you agree with the statement ?

Question 2: explain with reasons , whether you think this idea that inventories should be included in accounts at the lower of historical cost and net realizable value , is a useful one . refer to at least two classes of user of financial accounting reports in your answer

Reference no: EM132646378

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