The use of the lower of cost or market method to value inventory indicates a probable loss sustained.This is an application of the accounting principle of

A) matching.
B) going concern.
C) conservatism.
D) consistency.

Conservatism

An accounting principle that requires potentially uncertain expenses and liabilities to be recognized promptly, but revenues only when they are assured.

Accounting Principle

Fundamental guidelines or rules that govern financial accounting practices.

Cost Or Market

An accounting method used to value inventory or securities at the lower of either its original cost or its market value as of the reporting date.