If the Absolute Price of a Computer Is $600 and the Relative

question 45

Multiple Choice

If the absolute price of a computer is $600 and the relative price of a dining room table is 3 computers, it follows that the absolute price of a dining room table is

• A)$180.
• B)$200.
• C)$3,000.
• D)$30,000.
• E)$1,800.

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Definitions:

Fair Value

Fair Value is the estimated market value of an asset or liability, based on current prices in an open market, used for financial reporting.

Gain Recognized

The profit that is realized and reported on the financial statements when an asset is sold for more than its carrying amount.

Transfer Date

The specific date on which the ownership or control of an asset is transferred from one party to another.

Consolidated Net Income

The total net income of a parent company and its subsidiaries after eliminating intercompany transactions, presented as a single figure.