Accountants Do Not Attempt to Measure the Change in a Plant

question 62

Multiple Choice

Accountants do not attempt to measure the change in a plant asset's fair value during ownership because

• A) the assets are not held for resale.
• B) plant assets cannot be sold.
• C) losses would have to be recognized.
• D) it is management's responsibility to determine fair values.

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Definitions:

Defense Mechanisms

Psychological strategies employed by individuals to cope with reality and maintain self-image by unconsciously denying or distorting reality.

Reaction Formation

A defense mechanism where unacceptable impulses are transformed into their opposite in one's consciousness.

Repression

A defense mechanism in psychoanalytic theory where uncomfortable thoughts, memories, or desires are pushed out of conscious awareness.

Topographical Model

A Freudian theory in psychology which divides the human mind into the conscious, preconscious, and unconscious parts.