Assets are valued:
A)in different ways, depending on the state of inflation or deflation.
B)at their purchase prices minus accumulated depreciation.
C)at the amount for which they could be sold.
D)by accountants, using any careful or arbitrary assumptions they choose.
E)in general by rule-of-thumb, so that mistakes are not uncommon.

Question

Quizplus · Accepted Answer

Assets are generally valued at their purchase price minus accumulated depreciation, which reflects their decrease in value over time due to wear and tear or obsolescence. This is known as historical cost accounting and is the most commonly used method for valuing assets. Other methods, such as fair market value accounting, may also be used depending on the situation, but historical cost accounting is the most widely accepted standard.

Assets Are Valued