Which of the Following Statements Is a Valid Reason to Select

question 69

Multiple Choice

Which of the following statements is a valid reason to select cost model over the revaluation model?

• A) to report relevant information
• B) to reduce taxes
• C) to properly match costs with expenses
• D) to simplify the measurement accounting policy

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Definitions:

Shareholders

Individuals or entities that own shares in a company, giving them partial ownership and possibly voting rights.

Strategic Fit

The degree to which an organization's strategies align with its external environment and internal capabilities.

Divestiture

Getting rid of a business unit. The reverse of an acquisition.

High Debt

A situation where an individual or organization carries a heavy financial obligation, often measured relative to income or assets, which can lead to increased risk and financial strain.