The most conceptually appropriate method of valuing a liability under the historical cost basis is to
a. discount the amount of expected cash outflows that are necessary to liquidate the liability using the market rate of interest at the date the liability was initially incurred.
b. discount the amount of expected cash outflows that are necessary to liquidate the liability using the market rate of interest at the date financial statements are prepared subsequent to issuance.
c. record as a liability the amount of cash or cash-equivalent value that the company would be required to pay to eliminate the liability in the ordinary course of business on the date of the financial statements.
d. record as a liability the amount of cash or cash-equivalent proceeds actually received when a liability was incurred.
A
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Which of the following is depicted when the auditor simply considers his or her own incentives, such as audit fees, sampling costs, and penalties?
a. Higher-order reasoning b. Zero-order reasoning c. First-order reasoning d. Deductive reasoning
Concomitant variation is the extent to which a cause, X, and an effect, Y, occur together or vary together in the way predicted by the hypothesis under consideration
Indicate whether the statement is true or false
U.S. GAAP and IFRS distinguish three categories of long-lived assets for purposes of measuring and recognizing impairment losses. The second category addresses intangibles, other than goodwill, not subject to amortization. This category does not include:
a. brand names. b. trademarks. c. franchise rights. d. renewable licenses. e. none of the above
On October 7, 1830, the “black line” formed in Tasmania. It was a human chain of 2,200 soldiers, police, freemen, and convicts stretching across southeastern Tasmania to flush out ______.
a. mercenaries b. ivory traders c. Aboriginals d. pirates