What Method of Fixed Asset Valuation Would Most Likely Be

question 13

Multiple Choice

What method of fixed asset valuation would most likely be used in countries that regularly experience high rates of inflation?

• A)Historical cost
• B)Net realizable value
• C)Fair value
• D)Net present value

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Definitions:

Inventory

The complete list of items such as goods, materials, and merchandise that a business holds with the intent to sell.

CPA

Certified Public Accountant, a professional designation given to qualified accountants who have passed a licensing examination in their jurisdiction.

Security Interest

A legal claim on assets which are given to secure a loan and ensure the repayment of debt.

Debtor

A debtor is an individual or entity that owes a debt to another party, usually a sum of money.