Solved

Match Each Measurement Alternative with Its Descriptive Statement by Placing

Question 38

Matching

Match each measurement alternative with its descriptive statement by placing the appropriate letter in the space provided.

Premises:

Responses:

The amount of cash into which an asset is expected to be converted, less any expected conversion costs.

historical cost

The amount of cash that would be required to obtain the same asset on the date of the balance sheet.

current replacement cost

The net amount of discounted expected cash flows relating to the asset.

fair value

The amount of cash that could be obtained on the balance sheet date if the asset were sold in its present condition in an orderly liquidation.

net realizable value

The amount of cash paid for the asset when it was originally acquired.

present value

Premises:

The amount of cash into which an asset is expected to be converted, less any expected conversion costs.

The amount of cash that would be required to obtain the same asset on the date of the balance sheet.

The net amount of discounted expected cash flows relating to the asset.

The amount of cash that could be obtained on the balance sheet date if the asset were sold in its present condition in an orderly liquidation.

The amount of cash paid for the asset when it was originally acquired.

Responses:

historical cost

current replacement cost

fair value

net realizable value

present value

Correct Answer:

Premises:

Responses:

The amount of cash into which an asset is expected to be converted, less any expected conversion costs.

The amount of cash that would be required to obtain the same asset on the date of the balance sheet.

The net amount of discounted expected cash flows relating to the asset.

The amount of cash that could be obtained on the balance sheet date if the asset were sold in its present condition in an orderly liquidation.

The amount of cash paid for the asset when it was originally acquired.