All of the Following Statements Are True Except

question 133

Multiple Choice

All of the following statements are true except:

• A) IFRS requires that estimates of residual value and the life of the asset be reviewed at least annually and revised if necessary.
• B) The FASB standards do not have a specific rule that requires residual value and asset life to be reviewed annually.
• C) IFRS does not have a specific rule that requires residual value and asset life to be reviewed annually.
• D) The FASB generally requires operating assets to be recorded at acquisition cost, less depreciation, and the assets' values are not changed to reflect their fair market values or selling prices.

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Definitions:

Heuristic

A mental shortcut that allows people to solve problems and make judgments quickly and efficiently.

Algorithm

A methodical process or set of instructions designed to resolve an issue.

Fixation

Using a prior strategy and failing to look at a problem from a fresh new perspective.

Inductive Reasoning

Inductive reasoning is a method of reasoning in which specific observations or cases are used to form a general conclusion or theory.