Tests related to realizable value will vary according to the type of security and the associated accounting standard.

Question

Quizplus · Accepted Answer

Realizable value is a term used in accounting to describe the amount of money that a firm expects to receive from the sale of an asset. The tests related to realizable value will vary depending on the type of security involved and the accounting standard being used. Therefore, the statement is true.

Tests Related to Realizable Value Will Vary According to the Type