The application of GAAP requires firms to write down assets whose fair values decrease below their book values, but does not allow firms to revalue upward the values of assets whose fair values have increased. This asymmetric treatment rests on the ________________________________________
Fill in the blank(s) with correct word
conservatism convention.
You might also like to view...
In a company's annual report, the section called management discussion and analysis provides critical information in interpreting the financial statements and assessing the future of the company
a. True b. False Indicate whether the statement is true or false
Howard Stringer, a native of the United Kingdom, is Chairman of:
A) Nissan Motor (Japan). B) Pearson PLC (Great Britain). C) Ford Motor Company (USA). D) Sony (Japan). E) Atlas Copco AB (Sweden).
Social responsibility is
A. the view that organizations should satisfy the needs of consumers in a way that provides for society's well-being. B. the idea that individuals and organizations are accountable to a larger society. C. the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth. D. the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals. E. the fundamental, passionate, and enduring principles of an organization that guide its conduct over time.
Book value refers to the market value of a long-term asset
Indicate whether the statement is true or false