The value of fixed assets (such as plant, property, and equipment) included in total assets on the statement of financial position is the
A)loan value
B)wholesale or liquidation value
C)real estate tax basis assessment
D)acquisition cost reduced by accumulated deprecation
E)current net realizable value

Question

Quizplus · Accepted Answer

The value of fixed assets included in total assets on the statement of financial position is the acquisition cost reduced by accumulated depreciation. This is because fixed assets are usually depreciated over their useful lives, which decreases their book value over time. Therefore, the acquisition cost less accumulated depreciation provides a more accurate representation of the current value of the fixed assets.

The Value of Fixed Assets (Such as Plant, Property, and Equipment)