A Primary Disadvantage of the Amortized Cost Method of Accounting

question 66

True/False

A primary disadvantage of the amortized cost method of accounting for fixed assets is that the resulting values may not reflect the possible disposal value of the asset.

Recognize the importance of and methods for establishing construct validity in the absence of random assignment.

Identify when and how to apply interrupted time series design and its variations for research.

Distinguish selection biases and their impact on the internal and external validity of a study.

Understand the principle of utility and its application in resolving the water-diamond paradox.

---

Definitions:

Event

An occurrence or happening, especially one of significance, that can be planned or unplanned.

Equity Theory

A theory in social psychology that suggests individuals evaluate their relationships based on the balance or fairness of what they give and receive.

Procedural Fairness

Fairness that occurs when the process used to determine work outcomes is seen as reasonable.

Distributive Fairness

The perceived fairness of outcomes distributed within an organization, including resources, rewards, and responsibilities.