IIA Exam IIA-CIA-Part3 Topic 1 Question 78 Discussion

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

Question #: 78
Topic #: 1

[All IIA-CIA-Part3 Questions]

Which of the following is the most appropriate way lo record each partner's initial Investment in a partnership?

AAt the value agreed upon by the partners.

BAt book value.

CAt fair value

DAt the original cost.

Show Suggested Answer

Suggested Answer: D

by Gaynell at May 14, 2024, 12:25 AM

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Cecilia

16 days ago

Honestly, I'm just hoping the answer isn't 'at the value of the partner's first-born child.' That would be a weird one.

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Thaddeus

23 days ago

C, of course! Fair value is the most accurate representation of the partnership's assets.

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Fletcher

4 days ago

B) At book value.

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Reita

13 days ago

A) At the value agreed upon by the partners.

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Margot

1 months ago

Hmm, I'm torn between B and C. Book value or fair value...decisions, decisions.

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Carla

5 days ago

I agree, it makes more sense to record at fair value.

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Derick

15 days ago

I think fair value is the way to go.

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Ernest

1 months ago

D, definitely D. Original cost is the way to go - no need to complicate things.

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Tyisha

1 months ago

But fair value reflects the current market value, which is more accurate.

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Melda

1 months ago

I disagree, I believe it should be recorded at the original cost.

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Lavonne

1 months ago

A seems like the most logical choice. The partners should agree on the initial investment value, right?

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Eulah

9 days ago

A) At the value agreed upon by the partners.

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Tyisha

1 months ago

I think the most appropriate way is to record at fair value.

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