Which of the Following Is an Example of Proper Accounting

question 84

Multiple Choice

Which of the following is an example of proper accounting when it comes to reporting values on a company's balance sheet?

• A)X Company reported its land at the amount it could be sold for on the balance sheet date,which is higher than the original cost of the land.
• B)X Company reported its damaged equipment at an amount lower than it originally cost.
• C)X Company reported its inventory at its current market value,which is higher than its original cost.
• D)X Company reported its notes receivable at the amount it originally loaned to employees,some of whom have since been laid off.

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Definitions:

Collateral

An asset pledged as security for repayment of a loan, to be forfeited in the event of default.

Secured Bonds

Bonds that are backed by collateral, providing a safer investment option with lower interest rates due to reduced risk.

Debenture Bonds

Bonds that are unsecured and are issued only on the general credit of a corporation.

Quoted

Refers to the current price of a security, commodity, or currency that is stated in communication or trading.