The Measurement Principle That Says Assets Are Reported at the Price

question 89

Multiple Choice

The measurement principle that says assets are reported at the price that would be received if the item were sold is called

• A)fairvalue.
• B)historical cost.
• C)materiality.
• D)going concern.

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Definitions:

Marginal Benefit

The enhancement in satisfaction or utility that comes from acquiring or making an additional unit of a product or service.

Pollution Control

The implementation of measures to reduce or eliminate the emission of pollutants into the environment.

Pollution Abatement

Measures and efforts taken to reduce, control, or eliminate pollution from a particular source.

Negative Externalities

Costs that are suffered by a third party as a result of an economic transaction that they were not directly involved in.