Balance sheet assets should be valued at
A)original purchase price.
B)replacement value.
C)insured value.
D)fair market value.

Question

Quizplus · Accepted Answer

Balance sheet assets should be valued at their fair market value, which is the amount for which the asset could be exchanged between knowledgeable and willing parties in an arm's length transaction. This valuation method provides a more accurate representation of the current value of the assets, as opposed to using their original purchase price, replacement value or insured value.

Balance Sheet Assets Should Be Valued at