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NEW QUESTION 52
Current cost accounting reflects an approach to capital maintenance based on maintaining which one of the following?
- A. financial capability of the business
- B. cost of assets in the business
- C. operating capability of the business
- D. profitability of the business
Answer: C
NEW QUESTION 53
Which one of the following practices is not considered creative accounting?
- A. aggressive earnings management
- B. trading in derivatives
- C. window dressing
- D. profit smoothing
Answer: B
NEW QUESTION 54
A decision has been made to change the value of a major non-current asset, upon which depreciation is based, from original cost to a revalued amount. This results in a change in
- A. accounting estimate and must be disclosed.
- B. measurement basis and does not need to be disclosed.
- C. measurement basis and must be disclosed.
- D. accounting estimate and does not need to be disclosed.
Answer: C
NEW QUESTION 55
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