Which of These Is Not True with Respect to the Assumptions

question 18

Multiple Choice

Which of these is not true with respect to the assumptions of the value-in-use and the value-in-exchange approaches?

• A)Additivity of economic phenomena is made in the same unit,adjusted for inflation and price movements
• B)Up-to-date observations of market prices are more relevant for financial decision making
• C)Valuation does not depend on a subjective allocation
• D)Historical cost accounting is a fairly reliable valuation method

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Definitions:

GDP

Gross Domestic Product; a measure of the economic output of a country, representing the total value of all goods and services produced over a specified time period.

GDP

Gross Domestic Product is the aggregate market value of all ultimate goods and services made within a nation over a specified period.

Total Income

The aggregate income earned by all individuals or entities in an economy, including wages, profits, and rent.

Total Expenditure

The sum of all outlays or spending by an individual, household, or an economic entity within a certain period of time.