The Two Most Common Measures for Assets and Liabilities Used

question 11

Multiple Choice

The two most common measures for assets and liabilities used in AASB accounting standards are:

• A)market value and cost.
• B)cost and fair value.
• C)current replacement cost and fair value.
• D)fair value less costs to sell and cost.

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Definitions:

Long-Run Phillips Curve

A graphical representation suggesting that in the long term, there is no trade-off between inflation and unemployment, showing vertical at the natural rate of unemployment.

Unemployment Rate

The percentage of those in the labor force who are not working but are in search of employment.

Natural Rate

Often refers to the natural rate of unemployment, which is the level of unemployment consistent with a stable rate of inflation, not zero unemployment.

Unemployment

The situation in which individuals who are capable of working and are actively seeking work remain un-hired.