By Permitting Some Classes of Assets to Be Valued at Cost

question 10

Multiple Choice

By permitting some classes of assets to be valued at cost and others at fair value the AASB has:

• A) removed any confusion regarding the total balance of non-current assets.
• B) forced entities to accurately reflect their true financial position at any point in time.
• C) created a situation where the total asset figure may be a combination of cost and fair value assessments, reducing its meaningfulness.
• D) removed the opportunity for managers to act in their own self-interest as suggested by Positive Accounting Theory.

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Definitions:

Orientation Program

A structured introduction offered by an organization to acquaint new employees with its policies, procedures, culture, and the roles they will be assuming.

Workplace Stressors

Factors or conditions in the workplace that can cause stress to employees.

Debasement

The reduction in value or quality of something, often used in the context of currency or moral standards.

Hazing

The practice of rituals, challenges, and other activities involving harassment, abuse, or humiliation used as a way of initiating a person into a group.