Which of the Following Was NOT a Common Argument Against

question 6

Multiple Choice

Which of the following was NOT a common argument against the Accounting Standards Board's proposal that all capital acquisitions be capitalized and amortized?

• A) Capitalization and amortization would be costly to apply.
• B) It would change the nature of the operating statement from one that reflects resources spent to one that reflects the cost of resources used.
• C) It would change the nature of the operating statement from one that reflects the cost of resources used to one that reflects resources spent.
• D) Small not-for-profit organisations' financial statement users are only interested in seeing what money has been spent and what money is left over.

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Definitions:

Resource Extraction

The process of withdrawing natural resources from the environment for human use and consumption.

Long-Run Stream

Refers to a period in which all factors of production and costs can be fully adjusted, allowing for a comprehensive analysis of operational efficiency and market dynamics.

Optimal Extraction Level

The most efficient rate at which a resource can be extracted to balance economic benefits and conservation.

Market Price

The current price at which a good or service can be bought or sold in a marketplace, subject to fluctuations based on supply and demand dynamics.