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Growth Corp

Question 61

Multiple Choice

Growth Corp. ,a publicly accountable entity,purchased a company with the following assets and liabilities for $100,000:
Growth Corp. ,a publicly accountable entity,purchased a company with the following assets and liabilities for $100,000: Which of the following is not correct about the difference between carrying value and fair value? A) Long-term liabilities could have a higher value due lower interest rates. B) Inventories could have a lower fair value due to obsolescence. C) Equipment could have a lower fair value due to decreased productive capacity. D) Inventories could have a lower fair value due to accounting errors.
Which of the following is not correct about the difference between carrying value and fair value?


A) Long-term liabilities could have a higher value due lower interest rates.
B) Inventories could have a lower fair value due to obsolescence.
C) Equipment could have a lower fair value due to decreased productive capacity.
D) Inventories could have a lower fair value due to accounting errors.

Correct Answer:

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