The Statement Concerning Asset Valuation Is That Is Incorrect Is

question 57

Multiple Choice

The statement concerning asset valuation is that is incorrect is:

• A)Subject to a few exceptions,non-current assets,after acquisition,can be measured at either cost or fair value.
• B)If non-current assets are measured using the cost basis,they cannot be valued at less than their recoverable amount.
• C)If non-current assets are measured using the fair value basis fair value must be regularly reassessed.
• D)Assets and liabilities are recorded initially at their historical cost.

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Definitions:

Increases and Decreases

Terms used to describe the upward and downward movements in financial and non-financial metrics within business operations.

T Account

The simplest form of an account.

Debit

An accounting entry that represents an increase in assets or expenses, or a decrease in liabilities, equity, or revenue.

Credit

An accounting entry that either decreases assets or increases liabilities and equity on a company's balance sheet, depending on the transaction.