Which of the Following Accounting Policies Is an Example of a Trade-Off

question 61

Multiple Choice

Which of the following accounting policies is an example of a trade-off between relevance and faithful representation?

• A) Research outflows are expensed and development activities expenses are capitalised.
• B) Biological assets are stated at fair value unless the fair value cannot be measured reliably.
• C) Machinery and equipment are reviewed periodically to assess propriety of useful life estimations used in depreciation.
• D) All of the given answers are correct.

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Definitions:

Broca's Area

Broca's area is a region in the frontal lobe of the dominant hemisphere, usually the left, of the brain that is responsible for language processing, speech production, and comprehension.

Cerebral Cortex

The outer layer of neural tissue of the cerebrum of the brain, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.

Temporal Lobe

A region of the cerebral cortex located beneath the temples, associated with processing auditory information and encoding memory.

Parietal Lobe

An area of the brain located between the frontal and occipital lobes, responsible for processing sensory information related to touch, taste, and temperature.