Floating assets are valued at____________?
Correct answer: C. Cost or market price whichever is lower
- A. cost
- B. Market price
- C. Cost or market price whichever is lower
- D. Cost less depreciation
Explanation
Floating assets, such as stock and other current assets, are generally valued conservatively at cost or market value, whichever is lower. This prevents unrealised gains from being reported.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
Practise Auditing
162 free Auditing MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Auditing questions
Goods sold on the basis of 'sales or return ' should:
Which of the following statements is, generally, correct about the reliability of audit evidence?
Which of the following is not corroborative evidence?
Stock should be valued at_________?
Verification refers to_________?
Which of the following statements is not correct about materiality?