Future Business Leaders of America (FBLA) Accounting Practice Test

Disable ads (and more) with a membership for a one time $4.99 payment

Prepare for the FBLA Accounting Test with practice quizzes and comprehensive questions. Each question is designed to help deepen your understanding and enhance your readiness for the exam. Are you ready to excel?

Start Multiple Choice Practice Test
Start Flash Cards

Practice this question and more.

What does "assessed value" represent?

  1. The value of an asset determined for selling purposes

  2. The value according to market conditions

  3. The value determined by tax authorities for tax calculation

  4. The original cost of the asset upon purchase

The correct answer is: The value determined by tax authorities for tax calculation

"Assessed value" refers to the value determined by tax authorities for the purpose of calculating property taxes. This value is not necessarily the same as the market value or selling price of an asset; rather, it is a valuation based on criteria set by the local government or taxation authority. This assessment takes into account factors such as property characteristics, location, and current market trends, but it is specifically designed to provide a basis for taxation. This process ensures that taxes are levied fairly and systematically across property owners, allowing governments to generate revenue needed for public services while providing a transparent method for determining how much each property owner should contribute. By using the assessed value rather than other estimates or the purchase price of the asset, tax assessments can be more aligned with local economic conditions and community needs.

More Questions Like This