Practice Quiz

Forensic Accounting

Category - Specialized Forensic Knowledge

Start a Study Session Sign up for Question of the Day
Which of the following is TRUE with respect to the absolute value model?
  1. Value of an asset is overstated
  2. Value of an asset is understated
  3. Value of an asset remains the same
  4. None of the above
Explanation
Answer: B - The value of an asset is understated when using the absolute value model. When referring to the absolute value model, value of an asset is a key consideration. In this method, the value of an asset is understated because it is measured at the historical cost value and the periodical ‘add-ons’ in the cost of the asset is not considered.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz