Which Statement Is Correct About Using the "Fair Value Less

question 58

Multiple Choice

Which statement is correct about using the "fair value less point of sale costs" approach for biological assets?

• A)The exception to "cost less depreciation" can be made at any subsequent measurement date.
• B)Fair value may not be available for initial recognition, but could be used for subsequent measurement.
• C)Fair value may be available for initial recognition, but then not be used for subsequent measurement.
• D)Under this accounting method, fair value can only be higher than cost.

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Definitions:

Mass

An estimation of the quantity of matter present in an object, commonly measured in grams or kilograms.

Significant Figures

Significant figures are the digits in a number that carry meaningful contributions to its measurement accuracy, including all the non-zero digits, zeroes between significant digits, and trailing zeros in a decimal.

Mass

A property of a physical body, indicating the amount of matter it contains and a measure of its resistance to acceleration when a force is applied.

Physical Change

Changes affecting the form of a chemical substance, but not its chemical composition, such as melting or freezing.