There is a growing tendency for many non-current assets to be valued on the basis of market values. The item which is most likely to be valued at market value is:
A) motor vehicles.
B) accounts receivable.
C) goodwill.
D) the assets of a life insurer.

Question

Quizplus · Accepted Answer

The assets of a life insurer are most likely to be valued at market value as they are predominantly financial instruments that are traded on markets. Valuing non-current assets at market value provides a more realistic picture of the company's financial position as it reflects the current market demand for those assets. Valuing accounts receivable at market value is not practical as it involves estimating the future collection of debtors. Motor vehicles and goodwill can also be valued at market value, but it is less common as their values are subjective and dependent on multiple factors.

There Is a Growing Tendency for Many Non-Current Assets to Be