Individual Assets Are Measured Using One of Five Alternative Methods

question 15

Essay

Individual assets are measured using one of five alternative methods. These methods are listed below, followed by a series of descriptive statements. a. historical cost
b. current replacement cost
c. fair value
d. net realizable value
e. present value

1.The amount of cash into which an asset is expected to be converted, less any expected conversion costs.

2.The amount of cash that would be required to obtain the same asset on the date of the balance sheet.

3.The net amount of discounted expected cash flows relating to the asset.

4.The amount of cash that could be obtained on the balance sheet date if the asset were sold in its present condition in an orderly liquidation.

5.The amount of cash paid for the asset when it was originally acquired.

Required:
Match each measurement alternative with its descriptive statement by placing the appropriate letter in the space provided.

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Definitions:

Prime Working Age

The age range typically considered to be the most productive and economically active period in an individual's life, often defined as 25 to 54 years.

Teenagers

Young people whose age falls within the range from 13 to 19 years.

Labor-Force Participation

The fraction of the population of working age that is engaged in employment or in the search for a job.

Prime Working Age

The age range typically considered most productive and desirable for employment, often defined as 25 to 64 years.