Under International Financial Reporting Standards, the Models Which Companies Can

question 118

Multiple Choice

Under International Financial Reporting Standards, the models which companies can choose to account for their long-lived assets are

• A) cost model and units-of-production model.
• B) units-of-production model and diminishing-balance model.
• C) revaluation model and straight-line model.
• D) cost model and revaluation model.

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Definitions:

Destabilizing

Causing or likely to cause a lack of stability in an economy or market, leading to uncertainty and potential financial downturns.

Equation of Exchange

A monetary theory equation that states the money supply multiplied by the velocity of money equals the price level times the quantity of goods and services sold (MV = PQ).

Interest Rate

The part of a loan that incurs interest fees for the borrower, customarily indicated as an annual percentage of the unpaid loan.

Discretionary Policies

Economic strategies, involving government spending and taxation, that are implemented at the discretion of the government to manage economic fluctuations.