When Phil lists his house on his balance sheet, he should record its:
A) actual purchase price.
B) depreciated value.
C) insured value.
D) deferred price.
E) fair market value.

Question

Quizplus · Accepted Answer

When listing an asset on a balance sheet, it is best to use the fair market value, which is the amount the asset could reasonably be expected to sell for in the current market. This gives a more accurate depiction of the asset's current value than the actual purchase price or depreciated value. Insured value and deferred price are not relevant in this context.

When Phil Lists His House on His Balance Sheet, He