Fair Value Accounting requires assets and liabilities to be measured at: MCQ with Answer and Explanation

Fair Value Accounting requires assets and liabilities to be measured at:
A. Book Value
B. Current market price or estimated exit price
C. Written Down Value
D. Historical Cost
Answer: Option B
Solution (By JKExamLibrary)
Under Fair Value, items are reported based on current market valuations, replacing the traditional historical cost concept for many financial instruments.

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Practice More Accountancy and Book Keeping Questions

Question #1 Report Error
GST was introduced in India on:
A. 1st July 2017
B. 1st January 2017
C. 1st April 2016
D. 1st April 2017

Correct Answer: Option A


Explanation:
Goods and Services Tax (GST) was rolled out on 1st July 2017.

Question #2 Report Error
The 'Section 80EEB' deduction is for:
A. Electric vehicle loan interest
B. Education loan
C. Medical insurance
D. Housing loan interest

Correct Answer: Option A


Explanation:
Section 80EEB provides deduction up to ₹1,50,000 on interest paid on loan for purchase of electric vehicle.

Question #3 Report Error
A company issues 20,000 equity shares of ₹10 each at a premium of ₹2 per share. Total amount received on application if full amount called on application will be:
A. ₹2,40,000
B. ₹1,60,000
C. ₹2,20,000
D. ₹2,00,000

Correct Answer: Option A


Explanation:
Issue price per share = ₹10 + ₹2 = ₹12. If whole amount called on application, total = 20,000 × 12 = ₹2,40,000.