Which of the following is not a difficulty in determining current market values when determining the value of fixed assets?
A) There is an absence of active markets for many fixed assets.
B) It is difficult to identify comparable assets currently available in the marketplace to value assets in place
C) It is difficult to make assumptions about the effects of technology and other improvements when using the prices of new assets currently available on the market in the valuation process.
D) Our current accounting model is not equipped to handle changes in market values.

Question

Quizplus · Accepted Answer

This statement is incorrect as the current accounting model has provisions for changes in market values through revaluation or impairment testing. Therefore, it is not a difficulty in determining current market values. A, B, and C are all valid difficulties in determining current market values when valuing fixed assets.

Which of the Following Is Not a Difficulty in Determining