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:

Inverse Supply

A concept that illustrates how the quantity of goods supplied by producers decreases as the price decreases, typically represented by an upward sloping curve in economics.

Tax

A compulsory financial charge or other levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers at various prices.

Supply Curve

A graphical representation of the relationship between the price of a good and the amount of it that producers are willing to supply.