Question
As per which accounting concept an asset should be
valued at ‘Lower of net realizable value’ or ‘Fair value’ ?Solution
The accounting concept that states that an asset should be valued at "Lower of net realizable value" or "Fair value" is the Conservatism concept, also known as the Prudence concept. This concept requires that a cautious approach should be taken in the face of uncertainty, and that losses and expenses should be recognized when they are probable, while gains and revenues should be recognized only when they are certain. In the case of an asset, if the asset's carrying value on the balance sheet exceeds its net realizable value or fair value, the asset must be written down to the lower value. For example, if a company has inventory that has a carrying value of $10,000, but its net realizable value is only $8,000, the company must write down the inventory to $8,000, as per the Conservatism concept. This ensures that the company recognizes the potential loss in value of the inventory, even if it has not yet been sold.
The question consists of five statements labelled A, B, C, D and E which when logically ordered form a coherent passage. Choose the option that represe...
A. outstanding loans by September 2018, so the end
B. to continue to rise to as high as 11.1% of total
C. to the bad loans mess seems nowh...
Which of the following best sums up the central idea of the paragraph formed after rearrangement?
- Choose the most logical order of sentences from among the four given choices to construct a coherent paragraph.
(A) The goal of working capital man... Directions: Sentences of a paragraph are given below in jumbled order. Arrange the sentences in the correct order to form a meaningful and coherent par...
Select the option that arranges sentences A, B, C and D in a logical sequence.
A. Of this about 60% gets recycled, according to the Union environ...
In the questions given below, a sentence has been broken down into four fragments labelled (A), (B), (C), and (D) and arranged, not necessarily in the ...
Given below are six sentences, out of which sentences A and F are in the correct position. Sentences B, C, D and E are in a jumbled order. Select the op...
Given below are four jumbled sentences. Select the option that gives their correct order.
A. Soon I reached the churchyard.
B. To my su...
Which of the following will be the THIRD sentence after rearrangement?