CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Current assets are always valued at historical cost. True or False?
Correct Answer: False

Some are valued at cost or the lower of cost or market value.

User Contributed Comments 6

User Comment
kalps Stock, can be valued at lower of cos or Market (Net realisable value or replacement cost under US gaap)
chenyx Some current assets are value at cost or lower of cost or market value.
guna Best example to think is "CASH" ignoring effects of inflation.
MattNYC AR are estimated amounts too, not at LCM
Shaan23 Cash at fair value or amortized cost
A/R at Net realizable value
Inventory - IFRS - lower of cost or NRV -- GAAP - Lower of cost or market.
farhan92 guna - nice one!
You need to log in first to add your comment.