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Questions and Answers
Which statement is true about the total carrying amount of equity?
Which statement is true about the total carrying amount of equity?
- It is directly measured in financial statements.
- It is the total of recognized assets minus recognized liabilities. (correct)
- It is the amount that could be raised by selling all of the entity's assets and settling all of its liabilities.
- It is equal to the market value of equity claims on the entity.
What is the relationship between the total carrying amount of equity and the market value of equity claims on the entity?
What is the relationship between the total carrying amount of equity and the market value of equity claims on the entity?
- They are equal.
- They are generally equal except in some circumstances. (correct)
- They are not related.
- They are inversely proportional.
Can the total carrying amount of equity be negative?
Can the total carrying amount of equity be negative?
- Yes, if the entity is not a going concern.
- No, it is always positive.
- Yes, depending on the measurement of assets and liabilities. (correct)
- No, it is not possible.
Which measurement basis is used when applying cash-flow-based measurement techniques?
Which measurement basis is used when applying cash-flow-based measurement techniques?
What is one factor to consider when measuring an asset or liability by reference to estimates of uncertain future cash flows?
What is one factor to consider when measuring an asset or liability by reference to estimates of uncertain future cash flows?
What does the expected value reflect when measuring an asset or liability by reference to estimates of uncertain future cash flows?
What does the expected value reflect when measuring an asset or liability by reference to estimates of uncertain future cash flows?
What information does a central estimate provide when measuring an asset or liability by reference to estimates of uncertain future cash flows?
What information does a central estimate provide when measuring an asset or liability by reference to estimates of uncertain future cash flows?
Which of the following statements is true about the total carrying amount of equity?
Which of the following statements is true about the total carrying amount of equity?
What is the total carrying amount of equity measured as?
What is the total carrying amount of equity measured as?
Under what circumstances can the total equity be negative?
Under what circumstances can the total equity be negative?
Which measurement basis is used when applying cash-flow-based measurement techniques?
Which measurement basis is used when applying cash-flow-based measurement techniques?
Which one of the following is NOT a characteristic of outcome uncertainty?
Which one of the following is NOT a characteristic of outcome uncertainty?
What does the maximum amount that is more likely than not to occur indicate?
What does the maximum amount that is more likely than not to occur indicate?
What information does a central estimate provide when measuring an asset or liability by reference to estimates of uncertain future cash flows?
What information does a central estimate provide when measuring an asset or liability by reference to estimates of uncertain future cash flows?
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