Value Is Defined as ______

question 44

Multiple Choice

Value is defined as ______.

• A)the product of the function to its cost
• B)the ratio of the function to its cost
• C)the reciprocal of the function to its cost
• D)the difference between the function and its cost

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Definitions:

Monetary Unit Assumption

An accounting principle that assumes transactions and events can be expressed in monetary units.

Dollar Amounts

Units of currency used in financial transactions or accounting to represent values or costs.

Fair Value

The value that could be gained from the sale of an asset or the expense of transferring a liability, in a regulated transaction among market players on the date of assessment.

Asset Acquired

An item of economic value obtained by a company, expected to provide future benefit by generating cash flows or reducing expenses.