Which of the Following Statements Concerning Asset Valuation Is Incorrect

question 58

Multiple Choice

Which of the following statements concerning asset valuation is incorrect?

• 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.

---

Definitions:

Breach of Contract

The failure to perform as specified by the terms of a contract without a legitimate legal excuse.

Tong

An organization or society, often referring to Chinese secret societies or fraternal organizations, some of which were involved in criminal activities.

Privity of Contract

A legal concept indicating that contracts are binding only upon the parties signing the contract, excluding any third parties.

Insurance Contract

A legally binding agreement between an insurer and the insured, outlining the terms for premium payment and the conditions under which the insurer will compensate the insured.