Valuing Assets at Their Liquidation Values Rather Than Their Cost

question 6

Multiple Choice

Valuing assets at their liquidation values rather than their cost is inconsistent with the

• A) periodicity assumption.
• B) historical cost principle.
• C) matching principle.
• D) economic entity assumption.

---

Definitions:

Negative Messages

Communication that conveys a refusal, rejection, or other unpleasant news in a tactful and considerate manner.

Buffer

A neutral opening statement in an indirect negative message that establishes common ground with the reader without revealing the main idea.

Specific Statements

Precise and clear expressions that convey particular information or detail without ambiguity.

Poorly Written

Describes text that is badly composed, making it difficult to understand or lacking clarity.