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SSC Audit Tax Finance P-II QUESTION #6182
Question 1
In FM, why is 'Market Value' preferred over 'Historical Cost' for analysis?
  • Market value is easier to calculate
  • Historical cost is always higher✔️
  • Assets' values are determined by the cash flows they generate today, not past cost
  • Tax authorities require market value for all reports
Correct Answer Explanation
Lesson 03 explains the FM focus on market value and incremental cash flows to determine the true value of a company.