Individual Assets Are Measured Using One of Five Alternative Methods

Essay

Individual assets are measured using one of five alternative methods. These methods are listed below, followed by a series of descriptive statements. a. historical cost
b. current replacement cost
c. fair value
d. net realizable value
e. present value

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

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

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

4.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.

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

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