Valuing Assets at Their Fair Value Rather Than at Their

question 122

Multiple Choice

Valuing assets at their fair value rather than at their cost is inconsistent with the

• A)economic entity assumption.
• B)historical cost principle.
• C)periodicity assumption.
• D)full disclosure principle.

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Definitions:

Probate Laws

The legal process through which a deceased person's estate is valued, beneficiaries are determined, and assets are distributed according to the deceased's will or state law.

Remaining Principal

The amount of the original loan or mortgage that has not yet been repaid.

Wal-Mart Stores

A multinational retail corporation operating a chain of hypermarkets, discount department stores, and grocery stores, headquartered in Bentonville, Arkansas.