Question

According to the fasbs conceptual framework, asset valuations accounts are considered:

A) assets
B) neither assets nor liabilities
C) part of equity
D) liabilities

Answer 1

Asset valuation accounts, according to the FASB's conceptual framework, are neither assets nor liabilities; they are adjustments to asset accounts on the balance sheet. Option b.

Step-by-step explanation:

According to the FASB's conceptual framework, asset valuations accounts are generally part of the balance sheet, but they are not defined explicitly as assets, liabilities, or equity. Instead, they may represent adjustments to asset accounts and are part of the broader process of measuring the value of assets on the balance sheet. Since they do not represent resources owned, claims against the company, or ownership interests in the company, asset valuation accounts are best described as B) neither assets nor liabilities.