What Is "Value in Use

question 94

Multiple Choice

What is "value in use"?

• A)The present value of the future cash flows expected to be derived from an asset.
• B)The amount obtainable from the sale of an asset in an arm's-length transaction less the costs of disposal.
• C)The higher of an asset's fair value less costs to sell and its value in use.
• D)The lower of an asset's fair value less costs to sell and its value in use.

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Definitions:

CVP

An acronym for Cost-Volume-Profit analysis, a financial tool used to determine how changes in costs and volume affect a company's operating income and net income.

Basal Metabolism

The rate at which the body uses energy while at rest to maintain vital functions such as breathing and keeping warm.

Body Fat

The energy-storing tissue in the body comprised of cells containing stored fat.

Stress

A condition of mental or emotional strain or tension resulting from adverse or demanding circumstances.