There Is a Growing Tendency for Many Non-Current Assets to Be

question 7

Multiple Choice

There is a growing tendency for many non-current assets to be valued on the basis of market values. The item which is most likely to be valued at market value is:

• A) motor vehicles.
• B) accounts receivable.
• C) goodwill.
• D) the assets of a life insurer.

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Definitions:

Partnership

A business organization where two or more individuals manage and operate the business in accordance with the terms and objectives set out in the Partnership Deed.

Contributing Assets

Assets given by owners or shareholders as part of their investment in the company.

Capital Balances

The amount of money invested in a company by its owners or shareholders.

Net Income

Net earnings reflecting the amount of revenue left over after all operating expenses, taxes, and interest have been paid.