Accountants suggest that assets
A) should be valued at market
B) should be valued at cost
C) should be valued at the lower of market or cost
D) should be valued at the higher of market or cost

Question

Accountants suggest that assets​
A) ​should be valued at market
B) ​should be valued at cost
C) ​should be valued at the lower of market or cost
D) ​should be valued at the higher of market or cost

Quizplus · Accepted Answer

Accounting standards typically require that assets be valued at the lower of market or cost, in order to incorporate caution and conservatism in financial reporting. This approach helps to prevent overstatement of the value of assets on a company's balance sheet, which could result in misleading financial statements.

Accountants Suggest That Assets​

Accountants Suggest That Assets