Questions: The lower-of-cost-or-net-realizable-value basis of valuing inventories is an example of - consistency. - conservatism. - comparability. - the historical cost principle.

The answer is conservatism.

Explanation for each option:

1. Consistency: This accounting principle requires that companies use the same accounting methods and procedures from period to period unless a change is justified. The lower-of-cost-or-net-realizable-value (LCNRV) method is not directly related to consistency, as it is a valuation method rather than a method of maintaining consistency in accounting practices.

2. Conservatism: This principle advises that potential expenses and liabilities should be recognized as soon as possible, but revenues only when they are assured. The LCNRV method is an example of conservatism because it requires inventory to be recorded at the lower of its cost or its net realizable value, ensuring that assets are not overstated.

3. Comparability: This principle allows users of financial statements to compare the financial statements of different companies because they are prepared using similar accounting methods. While LCNRV can aid in comparability, it is not primarily an example of this principle.

4. The Historical Cost Principle: This principle states that assets should be recorded at their original cost. The LCNRV method deviates from this principle by allowing inventory to be written down to its net realizable value if that value is lower than the cost, thus it is not an example of the historical cost principle.