With respect to the report as to affairs, which statement is correct? The total carrying amount of assets is:
A)likely to be higher than the total of their estimated realisable values
B)likely to be lower than the total of their estimated realisable values
C)unable to be determined and must be estimated with reference to a comparable company
D)likely to be equal to the total of their estimated realisable values

Question

Quizplus · Accepted Answer

The total carrying amount of assets is often higher than their estimated realisable values because the carrying amount is based on historical cost, which may not reflect current market conditions or the assets' condition at the time of valuation.

With Respect to the Report as to Affairs, Which Statement