In the case of exchanges of both similar and dissimilar assets, the asset acquired should never be recorded at an amount that is more than its market value.

Question

Quizplus · Accepted Answer

According to the accounting principle of exchange of assets, the acquired asset should be recorded at its fair market value, which means it should never be recorded at an amount higher than its market value. Therefore, the statement is true.

In the Case of Exchanges of Both Similar and Dissimilar