FASB Financial Accounting Concepts on Using Estimated Future Cash Flow

question 18

Multiple Choice

FASB financial accounting concepts on using estimated future cash flow information in accounting measurements identified each of the following four principles except

• A)the cash flows should consider all relevant future events and uncertainties
• B)the assumptions used to select interest rates should be consistent with the assumptions inherent in the estimated cash flow amounts
• C)the estimated cash flows and interest rates should be free from bias and unrelated factors
• D)the estimated cash flows should reflect a single most likely minimum or maximum possible amount, rather than a range of possible cash flows

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Definitions:

Network Capital

The valuable resources a person can access through their social networks, including support, information, and opportunities.

Gini Coefficient

A measure of statistical dispersion intended to represent the income inequality or wealth inequality within a nation or any other group of people.

Income Inequality

The unequal distribution of income among individuals or groups within a society, leading to economic and social disparities.

Human Capital

Is the sum of useful skills and knowledge that an individual possesses.