Assets on the balance sheet are valued at their
A)fair market value.
B)original purchase price.
C)replacement cost.
D)sentimental value.

Question

Quizplus · Accepted Answer

Assets on the balance sheet are typically valued at their fair market value, which is the price at which an asset would sell in the current market. This provides the most accurate representation of the value of the asset at the time the balance sheet is prepared. Valuing assets at their original purchase price or replacement cost may not accurately reflect their current value, and sentimental value is subjective and not an appropriate valuation method.

Assets on the Balance Sheet Are Valued at Their