Research Is Conducted in the Form of an Experiment Where

question 16

Multiple Choice

Research is conducted in the form of an experiment where the relative usefulness of historical cost and fair value measures are considered, and it is found that better decisions are made using fair values. This may suggest:

• A) A positive theory that fair value should be used to measure the items in the financial statements
• B) A normative theory that fair value should be used to measure the items in the financial statements
• C) A positive theory that historical cost is not useful and should not be used at all to measure items in the financial statements
• D) A normative theory that historical cost should be used to measure the items in the financial statements

---

Definitions:

Gases

Substances that exist in the gaseous state at standard temperature and pressure.

Capillaries

Microscopic blood vessels that facilitate the exchange of water, oxygen, carbon dioxide, and many other nutrients and waste substances between the blood and tissues.

Fenestrated Capillaries

Capillaries with small pores in their endothelial lining, allowing for the rapid exchange of substances between blood and tissues.

Large Fenestrae

Large fenestrae are large pores found in some capillary walls, facilitating the rapid exchange of substances between blood vessels and surrounding tissues.