IIA Exam IIA-CIA-Part3 Topic 2 Question 80 Discussion

Actual exam question for IIA's IIA-CIA-Part3 exam

Question #: 80
Topic #: 2

Which of following best demonstrates the application of the cost principle?

AA company reports trading and investment securities at their market cost

BA building purchased last year for $1 million is currently worth 1.2 million, but the company still reports the building at $1 million.

CA building purchased last year for 1 million is currently worth 1,2 million , and the company adjusts the records to reflect the current value

DA company reports assets at either historical or fair value, depending which is closer to market value.

Show Suggested Answer

Suggested Answer: C

by Elvera at Jun 02, 2024, 07:35 AM

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12 days ago

But doesn't the cost principle state that assets should be recorded at their original cost?

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13 days ago

I disagree, I believe the answer is C.

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14 days ago

I think the answer is B.

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