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      Question

      In relation to Accounting for Investments, which of the

      following statements is/are correct? Statement-1: The carrying amount for long-term investments is the lower of cost and fair value. Statement-2: Current investments are usually carried at cost.
      A Only statement-2 is correct Correct Answer Incorrect Answer
      B Neither statement-1 nor statement-2 is incorrect Correct Answer Incorrect Answer
      C Only statement-1 is correct. Correct Answer Incorrect Answer
      D Both statement-1 and statement-2 are correct. Correct Answer Incorrect Answer

      Solution

      The correct answer is B

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