The Valuation Assertion Includes ________

question 38

Multiple Choice

The valuation assertion includes ________.

• A)the measurement assumption used
• B)ensuring all inventory is counted
• C)making sure that all receivables relate to sales during the year
• D)the method of presenting short-term and long-term liabilities

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Definitions:

Carrying Value

The net book value of an asset or liability on a company's balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment costs.

Bond Discount

is the difference between the face value of a bond and its selling price when the bond is sold for less than its face value.

Straight Line Amortization

A method for calculating the periodic reduction in the carrying amount of an intangible asset, spreading the cost evenly over its useful life.

Par Value Bonds

Bonds issued with a fixed face value that is to be repaid at maturity, often different from their market value.