Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Financial Statements of a Company

Question:
Which of the following are the conventions used in the preparation of financial statements of a company?
Options:
Conservatism
Materiality
Valuing inventory at cost or market price, whichever is low
All of the above
Correct Answer:
All of the above
Explanation:
There are four widely recognized accounting conventions: conservatism, consistency, full disclosure, and materiality.