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      Question

      Current investments are carried

      at:
      A Fair value Correct Answer Incorrect Answer
      B Cost Correct Answer Incorrect Answer
      C Cost and fair value, whichever is less Correct Answer Incorrect Answer
      D Cost and fair value, whichever is higher Correct Answer Incorrect Answer

      Solution

      As per AS 13 - Accounting for Investments, current investments are valued at lower of cost or fair value, individually or by category of investment. This ensures that any decline in value is recognized promptly.

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