Under the Cost Model, After Initial Recognition of a Property

question 7

Multiple Choice

Under the cost model, after initial recognition of a property, plant and equipment asset the item must be carried at its:

• A) residual value.
• B) cost less accumulated depreciation and less accumulated impairment losses.
• C) initial cost.
• D) net present value.

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Definitions:

Deci-

A metric prefix denoting a factor of one tenth.

Grain

Small, hard seeds of cereal plants like wheat and rice, consumed as food.

Abbreviation

A shortened form of a word or phrase, used typically to save space or for convenience.

Ratio

Shows the relative sizes of two or more values.