Question

According to the going concern concept: 1)assets are recorded at cost and are depreciated over their useful life 2) Assets are valued at their market value at the year-end and are recorded in the books of account 3) Assets are valued at their market value, recorded in the books and depreciation is charged on the market value 4) None of the above

Answer 1

Answer:

Fixed assets are long term items such as property plant or equipment. Equipment is listed on the balance sheet at its historical cost amount, which is reduced by accumulated depreciation to arrive at a net carrying value or net book value.

Explanation:

An asset's book value can differ from its market value. Market value is the value of an asset as currently priced in the marketplace. In comparison, book value refers to the value of an asset as reported on the company's balance sheet; however, some assets are reported at market value on the balance sheet.