Growth Corp

question 8

Multiple Choice

Growth Corp., a publicly accountable entity, purchased a company with the following assets and liabilities for $100,000: Which of the following is not correct about the difference between carrying value and fair value?

• A)Long-term liabilities could have a higher value due lower interest rates.
• B)Inventories could have a lower fair value due to obsolescence.
• C)Equipment could have a lower fair value due to decreased productive capacity.
• D)Inventories could have a lower fair value due to accounting errors.

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Definitions:

National Industrial Recovery Act

A 1933 U.S. law aimed at boosting economic recovery during the Great Depression, which sought to encourage industrial growth and improve labor conditions.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s.

Great Depression

A severe worldwide economic depression that took place mostly during the 1930s, starting in the United States.

Surveillance

The observation or monitoring of activities or individuals, often for the purpose of information gathering, management, or control.