Valuation of Assets - SS1 Accounting Past Questions and Answers - page 1
Which of the following is a common method used to value assets?
Comparative Analysis
Subjective Analysis
Sensitivity Analysis
Random Analysis
The income approach to valuing assets is commonly used for which type of property?
Commercial real estate
Residential real estate
Physical assets
Stocks
The cost approach to valuing assets is commonly used for which type of asset?
Stocks
Physical assets
Rental properties
Bonds
The market capitalization approach is commonly used to value which of the following?
Rental properties
Physical assets
Publicly traded companies
Private companies
What is the purpose of valuing assets?
To determine their fair value or worth
To determine their purchase price
To determine their age
To determine their location
What is the importance of asset valuation?
Helps in making informed investment decisions
Helps in determining the location of assets
Helps in determining the age of assets
Helps in determining the colour of assets
What are the three main methods used to value assets?
The three main methods used to value assets are the comparable sales approach, income approach, and cost approach.
Why is asset valuation important for financial reporting purposes?
Asset valuation is important for financial reporting purposes because assets are typically recorded on a company's balance sheet at their fair value.