The carrying value or book value of assets:
A)is determined under GAAP and is based on the cost of the asset.
B)represents the true market value according to GAAP.
C)is always the best measure of the company's value to an investor.
D)is always higher than the replacement cost of the assets.
E)None of the above.

Question

Quizplus · Accepted Answer

The carrying value or book value of assets is determined under GAAP and is based on the cost of the asset, which is the historical cost minus any accumulated depreciation or amortization. This represents the amount at which the asset is recorded on the balance sheet and does not necessarily reflect the true market value or replacement cost of the asset. However, it is the basis for reporting the company's financial position and performance in the financial statements.

The Carrying Value or Book Value of Assets