A Specific Exception to the Use of Historical Cost to Value

question 66

Multiple Choice

A specific exception to the use of historical cost to value assets is if the net realisable value of inventories falls below cost. In this case the justification for the use of market value rather than cost relies on the:

• A)materiality principle.
• B)comparability principle.
• C)cost versus benefit principle.
• D)conservatism principle.

Explore the causes and consequences of the economic boom in the 1990s.

Understand the concept and objectives of downsizing and its implications on organizations.

Distinguish between workforce reduction, work redesign, and systemic change as strategies of downsizing.

Identify the impact of downsizing on organizational culture and employee morale.

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Definitions:

Protect Assets

Measures or strategies implemented by a company or individual to safeguard physical and intangible assets from loss, damage, or theft.

Internal Auditors

Professionals employed by an organization to perform audits on the efficacy and efficiency of its operations, ensuring adherence to laws and policies.

Internal Control Elements

Components of a framework designed to ensure the effectiveness and efficiency of operations, reliable financial reporting, and compliance with laws and regulations.

Petty Cash Fund

A small amount of cash kept on hand for minor, immediate expenses.