An entity purchased Rs 20 00 000 of goods and sold 80 of the same The realizable value of the goods ...........

General Accounting Principles Concepts of Accounting

An entity purchased Rs. 20,00,000 of goods and sold 80% of the same. The realizable value of the goods is Rs. 3,00,000 while the cost of goods is Rs. 4,00,000. The value recorded in the books is Rs. 3,00,000 under which concept

going concern

Money measurement

conservatism

none of the above

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Explanation:

conservatism-

In accounting, the convention of conservatism, also known as the doctrine of prudence, is a policy of anticipating possible future losses but not future gains. This policy tends to understate rather than overstate net assets and net income, and therefore lead companies to "play safe". Hence, inventory is valued at cost or NRV( net Realizable value whichever is less.