Replacement Cost Accounting (Current Cost Method)will Usually

question 105

Multiple Choice

Replacement cost accounting (current cost method) will usually:

• A) increase assets,decrease net income before taxes,and lower the return on equity.
• B) increase assets,increase net income before taxes,and increase the return on equity.
• C) decrease assets,increase net income before taxes,and increase the return on equity.
• D) increase assets,increase net income before taxes,and lower the return on equity.

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Definitions:

Farm Incomes

The earnings obtained from agricultural activities after expenses are deducted.

Crop

A cultivated plant that is grown on a large scale commercially, especially a cereals, fruit, or vegetable.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a certain period of time.

Agricultural Commodities

Raw products derived from farming, ranching, and forestry which are traded on commodities markets, such as grains, livestock, and dairy products.