The Alternative That Is Not an Argument in Favour of Exit

question 38

Multiple Choice

The alternative that is not an argument in favour of exit price accounting is:

• A)Valuing all elements in the financial statements at their money equivalents provides one rule that can be applied consistently.
• B)The financial statements are allocation-free
• C)Rather than measuring past events the method measures those that might happen if a firm does something other than what was planned
• D)Exit price accounting involves references to real-world examples therefore it is more grounded in reality than historical cost accounting

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