Fixed Assets Are Ordinarily Presented on the Balance Sheet

question 106

Multiple Choice

Fixed assets are ordinarily presented on the balance sheet

• A)at current market values
• B)at cost less accumulated depreciation
• C)at replacement costs
• D)in a separate section along with intangible assets

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Definitions:

Equity Method

is an accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the investee's net profit or loss.

Share Capital

The major account reflecting contributed capital.

Retained Earnings

Profits that a company has elected to keep at the end of a fiscal period instead of distributing to shareholders as dividends, often used for reinvestment.

Incremental Adjustment

A modification made to accounts or values in small stages, often used for accounting adjustments or to refine estimates.