After Initial Recognition,using ASPE,an Entity Should Measure Debt Securities at

question 4

Multiple Choice

After initial recognition,using ASPE,an entity should measure debt securities at

• A)Fair value through profit and loss
• B)Cost
• C)Future cash flows
• D)Amortized cost
• E)Present value

---

Definitions:

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life.

LIFO

"Last In, First Out", an inventory costing method where the most recently produced or acquired items are recorded as sold first.

FIFO

An inventory valuation method where the first items placed into inventory are the first ones sold; stands for First-In, First-Out.

Inventory Costing

The method used to assign costs to inventory, affecting the cost of goods sold and ending inventory valuations.