receivables not measured initially at their transaction price are measured initially at a. fair value plus transaction costs that are directly attributable to the acquisition of the financial asset b. fair value c. fair value minus transaction costs that are directly attributable to the acquisition of the financial asset d. fair value less costs to sell

receivables not measured initially at their transaction price are measured initially at a. fair value plus transaction costs that are directly attributable to the acquisition of the financial asset b. fair value c. fair value minus transaction costs that are directly attributable to the acquisition of the financial asset d. fair value less costs to sell

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The reason goodwill is sometimes referred to as a master valuation account is because a. it represents the purchase price of a business that is about to be sold.b. it is the difference between the fair market value of the net tangible and identifiableintangible assets as compared with the purchase price of the acquired business.c. the value of a business is computed without consideration of goodwill and thengoodwill is added to arrive at a master valuation.d. it is the only account in the financial statements that is based on value, all otheraccounts are recorded at an amount other than their value.
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choose the correct answer: Equity security acquired for trading should be measured at reporting date a. cost, being the purchase price b. cost, being the purchase price plus transaction costs c. fair value, with change in FV taken through profit or loss. d. fair value, with change in FV taken through other comprehensive income.