The class of assets that is to be valued at lower than cost or net realisable value is:
A) non-current assets.
B) debtors.
C) self-generating and regenerating assets.
D) inventories.

Question

Quizplus · Accepted Answer

The class of assets that is to be valued lower than cost or net realisable value is inventories. The reason for this is that inventory is subject to obsolescence, damage, and theft. As a result, if the market value of inventory falls below its cost, it is necessary to reduce its value to reflect its true worth.

The Class of Assets That Is to Be Valued at Lower