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Questions and Answers
What does realisable value refer to for assets?
What does realisable value refer to for assets?
- The acquisition price of the asset
- The current cost of the asset
- The historical cost of the asset
- The amount of cash or cash equivalents currently realisable on sale of the asset (correct)
What is the present value?
What is the present value?
- The total revenue generated by the business over a particular time period
- The projected value of the business in the future
- The amount one has to receive from the business today to invest in other ventures
- The amount one has to invest in the business today to have a certain sum after a particular time (correct)
How are liabilities defined in terms of current cost?
How are liabilities defined in terms of current cost?
- Historical cost of the liability
- Undiscounted amount of cash or cash equivalents expected to be paid on settlement of liability in the normal course of business (correct)
- Amount of cash or cash equivalents that would be required to settle the obligation
- Acquisition price of the liability
What are the qualitative characteristics of financial statements?
What are the qualitative characteristics of financial statements?
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What does historical cost refer to?
What does historical cost refer to?
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What is materiality in financial statements?
What is materiality in financial statements?
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