Which of the following is not a true statement regarding assets as they appear on the balance sheet?

a. Historical cost gives a good indication of the productive value of assets.
b. Assets held for sale and measured at net realizable value represent a high degree of certainty as to measurement reliability.
c. Certain types of deferred charges do not have any direct effect on future cash flows.
d. In terms of additivity, it is questionable if a balance sheet should be added.


ANSWER: A

Business

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