📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    ⚡ BIG BEE DAYS Are Live - Spin the Wheel to Get BIGGEST DISCOUNT of the Year -⚡

    Question

    If a long-term investment suffers a permanent decline in

    value, how should it be accounted for under AS 13?
    A The investment should be reclassified as a short-term investment. Correct Answer Incorrect Answer
    B The loss should be ignored. Correct Answer Incorrect Answer
    C The carrying amount should be reduced and charged to the Profit and Loss Account Correct Answer Incorrect Answer
    D The loss should be adjusted against retained earnings. Correct Answer Incorrect Answer

    Solution

    The correct answer is C

    Practice Next
    More Accounts Questions
    ask-question