When Phil lists his house on his balance sheet,he should record the:
A) actual purchase price.
B) replacement value.
C) insured value.
D) deferred price.
E) fair market value.

Question

Quizplus · Accepted Answer

When listing an asset on the balance sheet, it is recommended to record its fair market value. This represents the price that a knowledgeable buyer would pay to a knowledgeable seller in an arm's length transaction. It more accurately reflects the current value of the asset and allows for better analysis of the company's financial position.

When Phil Lists His House on His Balance Sheet,he Should