Which of These Is Not Correct Concerning Measuring Assets at Their

question 21

Multiple Choice

Which of these is not correct concerning measuring assets at their current cash equivalent?

• A) Shareholders would be able to satisfy themselves that the business has maintained its capacity to adapt to change
• B) A useful measure of solvency is provided
• C) Information is provided to creditors about asset marketability
• D) The measurement of performance is given pre-eminence over the measurement of financial position

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Definitions:

Real Property

Land and anything permanently affixed to it, such as buildings, also including rights and interests in the property.

Personal Property

Any property that is not real estate; movable assets including vehicles, furniture, and personal belongings.

Office Building

A structure designed primarily for housing offices and workspace for various businesses and organizations.

Real Property

Real property refers to land, as well as anything permanently attached to the land, like buildings and houses.