Multiple choice

The cost price of a long term investment is Rs. 25,000 but its current market value is Rs. 15,000. The investment is likely to fetch Rs. 40,000 at its maturity. What should be the value which should be recorded in the books for this investment?

  1. Rs. 25,000

  2. Rs. 15,000

  3. Rs. 40,000

  4. Rs.20,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The long term assets should be recorded as per cost concept. Hence, Rs. 25,000 should be recorded in the books.

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