A generally accepted method of valuation is
1. trading securities at market value.
2. accounts receivable at net realizable value.
3. inventories at current cost.
A) 1
B) 2
C) 3
D) 1 and 2

Question

Quizplus · Accepted Answer

Trading securities are typically valued at market value, and accounts receivable are valued at net realizable value, which are both generally accepted valuation methods. Inventories, however, are usually valued at the lower of cost or market value, not current cost.

A Generally Accepted Method of Valuation Is