Which of the Following Is the Correct Measurement of Assets

question 8

Multiple Choice

Which of the following is the correct measurement of assets and liabilities,according to AASB 1038?

• A) Assets Liabilities Net present value Fair value
• B) Assets Liabilities Fair value Net present value
• C) Assets Liabilities Fair value Fair value
• D) Assets Liabilities Net present value Net present value

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Definitions:

Operating Leverage

An indicator of how increases in revenue lead to expansions in operating income, showing the level of fixed expenses within a company's cost framework.

Fixed Costs

Costs that do not change with the level of goods or services produced by a business.

Variable Costs

Expenses that change in proportion to the activity of a business, such as the cost of raw materials or production costs.

Variable Costs

Costs that vary directly with the level of production or output.