Question 1

Which of the following is NOT a disadvantage of current exit value accounting;

Accepted Answer

A) it fails to follow the going concern convention. 
B) it considered to be subjective. 
C) it only focusses on long- run operational effectiveness. 
D) it fails to give useful information about internal usefulness of assets. 
A) it fails to follow the going concern convention. 
B) it considered to be subjective. 
C) it only focusses on long- run operational effectiveness. 
D) it fails to give useful information about internal usefulness of assets. C

Question 2

Edwards & Bell defined Current values as;

Accepted Answer

A) values actually realized during the current period for goods sold. 
B) values potentially realized during the current period for goods to be sold. 
C) value of goods held during the current period. 
D) value of good acquired during the current period. 
A) values actually realized during the current period for goods sold. 
B) values potentially realized during the current period for goods to be sold. 
C) value of goods held during the current period. 
D) value of good acquired during the current period. A

Question 3

Replacement cost valuations are usually more subjective than deprival valuations.

Accepted Answer

A) True 
 B)False  False

Question 4

Which of the following is NOT an advantage of deprival cost accounting?

Accepted Answer

A) it allows for the proper maintenance of the 'business substance' 
B) it values resources at expected proceeds if they are to be replaced. 
C) it provides a balance sheet based on current value. 
D) it is consistent with accounting concepts. 
A) it allows for the proper maintenance of the 'business substance' 
B) it values resources at expected proceeds if they are to be replaced. 
C) it provides a balance sheet based on current value. 
D) it is consistent with accounting concepts.

Question 5

Which of the following is NOT a disadvantage of deprival cost accounting?

Accepted Answer

A) it is more subjective than replacement cost accounting. 
B) it fails to concentrate attention on long run attention on long run effectiveness. 
C) it fails to give information about the internal usefulness of assets. 
D) it is less realistic than replacement cost. 
A) it is more subjective than replacement cost accounting. 
B) it fails to concentrate attention on long run attention on long run effectiveness. 
C) it fails to give information about the internal usefulness of assets. 
D) it is less realistic than replacement cost.

Question 6

In a practical business context disposal value rarely matches replacement cost.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is NOT an advantage of current exit value accounting;

Accepted Answer

A) it follows the economic 'opportunity cost' principle. 
B) exit values facilitate comparison. 
C) the concept of realisable value is best understood by professional accountants. 
D) it is already widely used. 
A) it follows the economic 'opportunity cost' principle. 
B) exit values facilitate comparison. 
C) the concept of realisable value is best understood by professional accountants. 
D) it is already widely used.

Question 8

Deprival value (DV)has a clearly definable concept of capital maintenance.

Accepted Answer

A) True 
 B)False

Question 9

Net realisable value can be defined as,"the proceeds after deducting additional avoidable expenses of disposal".

Accepted Answer

A) True 
 B)False

Question 10

The deprival value of an asset can be defined as the loss that a rational business person would suffer if deprived of the asset.

Accepted Answer

A) True 
 B)False

Exam 6: Current Exit Value and Mixed Values

Which of the following is NOT a disadvantage of current exit value accounting;

Edwards & Bell defined Current values as;

Replacement cost valuations are usually more subjective than deprival valuations.

Which of the following is NOT an advantage of deprival cost accounting?

Which of the following is NOT a disadvantage of deprival cost accounting?

In a practical business context disposal value rarely matches replacement cost.

Which of the following is NOT an advantage of current exit value accounting;

Deprival value (DV)has a clearly definable concept of capital maintenance.

Net realisable value can be defined as,"the proceeds after deducting additional avoidable expenses of disposal".

The deprival value of an asset can be defined as the loss that a rational business person would suffer if deprived of the asset.

Basics of Financial Reporting

International Accounting Differences

The Process of Harmonization

Economic Valuation Concepts

Current Entry Value

Current Purchasing Power Accounting

Fair Values

Accounting Theory and Conceptual Frameworks

Structure of Published Financial Statements

Corporate Governance, corporate Social Responsibility and Ethics

Basics of Interpretation of Financial Statements

Fixed Non-Currenttangible Assets

Intangible Assets

Impairment and Disposal of Assets

Leases

Inventories and Construction Contracts

Accounting for Financial Instruments

Revenue

Provisions, contingent Liabilities and Contingent Assets

Income Taxes

Employee Benefits

Changing Prices and Hyperinflationary Economies

Statements of Cash Flows

Disclosure Issues

Business Combinations

Consolidated Financial Statements

Alternative Concepts on Consolidation and Business Combinations

Accounting for Associates, joint Arrangements and Related Party Disclosures

Foreign Currency Translation

Interpretation of Financial Statements

Techniques of Financial Analysis

Filters