The Relationship of a Number on the Financial Statements to Another

question 12

Multiple Choice

The relationship of a number on the financial statements to another number is called a _____.

• A) financial ratio
• B) financial statement
• C) domestic term
• D) management accounting marker
• E) financial deposit

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Definitions:

Impairment

A decrease in the recoverable value of an asset below its carrying amount on the balance sheet, necessitating a write-down of its value.

Fair Value

An estimate of the price at which an asset or liability would trade in a fair transaction between willing parties.

Useful Life

The estimated period over which an asset is expected to be useful in the operations of a business.