6 Questions
What does realisable value refer to for assets?
The amount of cash or cash equivalents currently realisable on sale of the asset
What is the present value?
The amount one has to invest in the business today to have a certain sum after a particular time
How are liabilities defined in terms of current cost?
Undiscounted amount of cash or cash equivalents expected to be paid on settlement of liability in the normal course of business
What are the qualitative characteristics of financial statements?
Given information in financials should be relevant to the decision-making needs of the users
What does historical cost refer to?
The original cost of an asset at the time it was acquired
What is materiality in financial statements?
Relates to information that influences the economic decisions of users
Test your knowledge of finance concepts such as present value, realisable value, and current cost with this quiz. Understand the amount one needs to invest today to achieve a specific sum in the future, as well as the amount of cash or cash equivalents realisable from asset sales and the current carrying amount of assets based on cash or cash equivalents.
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