Mirza and Zimmer (1999)found That Only a Small Number of Companies

question 55

Multiple Choice

Mirza and Zimmer (1999) found that only a small number of companies were undertaking upward asset revaluations.The reasons for their reluctance to undertake this practice included.

• A) A desire to remain 'small' in keeping with the political-cost hypothesis.
• B) Any revaluations made are not permitted to be recognised as income by the relevant accounting standard.
• C) In an attempt not to overstate assets management preferred not to revalue items which are subject to a great deal of uncertainty.
• D) All of the given answers.
• E) Any revaluations made are not permitted to be recognised as income by the relevant accounting standard; and, in an attempt not to overstate assets, management preferred not to revalue items which are subject to a great deal of uncertainty.

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Definitions:

Loss-minimizing

A strategy employed by businesses to reduce the amount of financial losses incurred during unfavorable market conditions or through poor operational decisions.

Units of Output

The quantity of product produced, serving as a measure of a firm's or industry's total production.

Profit-maximizing

A strategy or approach aimed at achieving the highest possible profit, where revenue exceeds costs by the greatest amount.

Market Price

The present cost at which a product or service is available for purchase or sale in a specific market.