Under GAAP the value of all the firm's assets are reported at:
A) Carrying value or market value.
B) Book value or liquidation value.
C) Market value or Carrying value.
D) Book value or Carrying value.

Question

Quizplus · Accepted Answer

Under GAAP, the value of all the firm's assets are reported at either book value or carrying value. Book value refers to the value of the assets as reported on the firm's balance sheet, which is calculated as the historical cost of the asset less accumulated depreciation or amortization. Carrying value refers to the value at which the asset is currently being carried on the balance sheet, which may be adjusted for factors such as impairment or revaluation.

Under GAAP the Value of All the Firm's Assets Are