Which Statement Describes the "Historical Cost Model

question 39

Multiple Choice

Which statement describes the "historical cost model"?

• A)A model which keeps the carrying value of an asset and adjusts for depreciation and impairment.
• B)A model which restates the value of an asset at each measurement date.
• C)A model which restates the carrying value of an asset to the asset's fair value on the date of revaluation.
• D)A model which values the asset based on its productive capacity.

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Definitions:

Ethmoid Bone

A sponge-like, cube-shaped bone located between the eyes, forming a portion of the nasal cavity and the eye sockets.

Auditory Ossicles

Three small bones (the malleus, incus, and stapes) located in the middle ear that transmit sound vibrations from the eardrum to the inner ear.

Malleus

A small bone in the middle ear that transmits sound vibrations from the eardrum to the incus, one of three ossicles.

Cranial Bones

The bones that form the skull, protecting the brain and supporting the structures of the face.