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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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