Subjectivity does not apply to the valuation of:
A) cash.
B) inventory.
C) property, plant and equipment.
D) net accounts receivable.

Question

Quizplus · Accepted Answer

Cash is an objectively valued asset as its value is not subject to interpretation or opinion. The value of cash is backed by its face value or the currency it represents. Inventory, property, plant and equipment, and net accounts receivable all involve some level of subjectivity in their valuation as they are influenced by factors such as market demand, useful life, depreciation, and obsolescence.

Subjectivity Does Not Apply to the Valuation Of