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a. cost
b. the lower of market or cost
c. market
d. the higher of market or cost
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∙ 13y ago
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Why FIFO should or should not be an acceptable method of valuing current assets?
Current assets are always valued at current market values so if assets purchased is used a FIFO method then historical costs would be shown in balance sheet which may be change drastically and which presents not accurate information.
What actions should you take if you have been told by one of your analyst that Mexican peso is expected to depreciate by 30 percent against the US dollar on the foreign exchange market over next year?
You should change the denomination of your debt into Mexican pesos; if you have assets valued in pesos you should change them in favor of dollar-denominated assets.
Why in internal reconstruction capital reduction account is being prepared?
it is prepared so the amount reduced will be utilised in writing of fictitious assets, some intangible assets and the over valued portion of fixed assets
How do you account for an asset you paid less than its valued price?
Assets are recorded at the price that was paid (cost).
Who claims dividends of deceased stockholder without kin or a Will?
The estate. Even without a will, an estate needs to be opened and the assets valued and distributed. The assets include the stocks and related dividends.
What is monetary assets?
A valued property or a thing that holds a price, mostly cash. These have fixed values that are unaffected by inflation or deflation.
Why do businesses depreciate fixed assets?
All fixed assets will decline in value over time, by depreciating( the decline in the estimated value of a fixed asset over time) the assets retain some value and the end of their useful life. The profits will also be correctly valued.
What is a schedule of assets for probate?
It is a listing of all items in the estate. One of the primary duties of the executor is to inventory the estate. They also have to have the estate valued.
Define deferred tax?
Deferred tax is the future tax liability or assets. It could either be tax liability or tax assets totally depending on the temporary difference which means the difference between book value and tax valued.
How do you divide personal assets equally when administering an estate?
That is one of the challenges of being the executor. The estate has to be inventoried and valued. There are actually software programs that can help with this.
Are mineral rights considered part of an estate that have to be liquidated or executed to pay debt?
Mineral rights are a part of the estate. All assets have to be valued and distributed or liquidated. Any proceeds from the sale of assets must be used to pay off any debts.
What is the historical cost model?
Historical cost model is a valuation process for assets wherein they are valued at cost of acquisition plus all costs incidental to cost of acquisition.
