Under the Revaluation Method of Measuring an Intangible, the Asset

question 7

Multiple Choice

Under the revaluation method of measuring an intangible, the asset is carried at fair value and subject to charges for:

• A) interest.
• B) inflation.
• C) improvements.
• D) amortisation and impairment.

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Definitions:

Opportunity Cost

The cost of what you have to give up in order to choose something else.

Output

The sum of all goods or services created by an enterprise, industry, or the economy over a certain period.

Economic Profits

The profit or loss calculated by taking out both straightforward and assumed expenses from total income.

Purely Competitive

A business environment marked by the proliferation of many small enterprises, a uniform product, and effortless procedures for both entry and exit.