In the accounting statement of affairs, the book value of the assets should be greater than the assets' estimated realizable value plus the estimated gain on liquidation.

Question

In the accounting statement of affairs, the book value of the assets should be greater than the assets' estimated realizable value plus the estimated gain on liquidation.​

Quizplus · Accepted Answer

In the accounting statement of affairs, the book value of the assets should be equal to or less than the assets' estimated realizable value plus the estimated gain on liquidation. This is because assets may have depreciated in value over time and may not sell for the same amount as they were initially recorded in the books. Therefore, the estimated realizable value may be lower than the book value of the assets.

In the Accounting Statement of Affairs, the Book Value of the Assets