_____ Is the Basis for the Practice of Reporting Certain

question 75

Multiple Choice

_____ is the basis for the practice of reporting certain assets at the lower of acquisition cost or fair value.The requirement to test assets for impairment and to record impairment charges rests on the notion that balance sheet carrying values of assets should not exceed the amount of cash that the firm expects to receive by using or selling the asset.

• A)Conservatism
• B)Reliability
• C)Relevance
• D)Recognition
• E)Realization

---

Definitions:

Posterior Pituitary

The back part of the pituitary gland that releases hormones, such as antidiuretic hormone and oxytocin, which are produced in the hypothalamus.

Antidiuretic Hormone

A hormone that helps regulate water balance in the body by reducing urine production and aiding water reabsorption in kidneys.

Thyroid Stimulating Hormone

A pituitary hormone that regulates the production of hormones by the thyroid gland.

Metabolic Rate

The rate at which an organism converts food and oxygen into energy and waste products, influencing its speed of growth, reproduction, and aging.