One of the Key Factors Identified by Chambers in Support

question 46

Multiple Choice

One of the key factors identified by Chambers in support of CoCoA is additivity.Which of the following does not support this view expressed by Chambers?

• A)Using different measurement scales in financial statements renders them unable to provide practical meaning when the values are aggregated.
• B)The valuation of all elements of the balance sheet at their money equivalents provides one rule that can be applied consistently by any company
• C)The cash equivalent of assets can be quite different depending upon the procedure used in selling them
• D)All of the above do not support the view that CoCoA has additivity.

---

Definitions:

Cash

A form of currency that includes coins and paper notes, used as a medium of exchange for goods and services.

Fixed Asset Turnover

A financial ratio that measures a company's efficiency in using its fixed assets to generate sales.

Generating Sales

The process of creating revenue for a company through selling goods or services.

Fixed Assets

Durable, physical assets utilized in running a business, which are not foreseen to be cashed in or used up in the near term.