Assume an Asset Is Measured by the Amount of Cash

question 45

Multiple Choice

Assume an asset is measured by the amount of cash (or its equivalent) into which it is expected to be converted in an orderly transaction between market participants on the date of measurement.Which measurement alternative is in use in this case?

• A)fair value
• B)historical cost
• C)present value
• D)reliable value

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Definitions:

Pineapple

A tropical fruit with a rough, spiky outer skin, sweet firm interior, and a tuft of stiff leaves on top.

Tip Rate

The tip rate is the percentage of the total bill amount given as extra money (tip) for services, typically in the hospitality industry.

Markup Rate

The percentage increase in price applied to the cost price of a product to determine its selling price.

Tourist Shop

A store that specializes in selling souvenirs and merchandise aimed at tourists.