A company selling or disposing of a long-term operating asset measures the asset at the lower of cost or net realizable value.

Name: A company selling or disposing of a long-term operating asset measures the asset at the lower of cost or net realizable value.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When a company decides to sell or dispose of a long-term operating asset, it must measure the asset at the lower of its carrying amount (cost) or net realizable value to ensure that the asset is not overstated on the balance sheet.

A Company Selling or Disposing of a Long-Term Operating Asset