Question: a) State and explain which accounting concepts are applicable or should be followed in the following situations, giving your reasons for the concept chosen: ii.

a) State and explain which accounting concepts are applicable or should be followed in the following situations, giving your reasons for the concept chosen:

ii. A company's stock valuation basis has been the lower of cost and net realizable value since its inception some ten years ago. Due to high rate of inflation some of the shareholders suggest that last-in, first-out basis of stock valuation be used. (2 Marks)

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