The following terms are mismatched with its definitions. Match the terms to its correct definitions. Terms Definitions Carrying amount The higher of an asset's fair value less costs to sell and its value in use Cost The cost of an asset or other amount substituted for cost, less its residual value Depreciable amount The amount by which the carrying amount of an asset exceeds its recoverable amount Entity-specific value The amount at which an asset is recognised after deducting any accumulated depreciation and accumulated impairment losses Fair value The amount of cash or cash equivalents paid or the fair value of other consideration given to acquire an asset at the time of its acquisition or construction Recoverable amount The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date Residual value The present value of the cash flows an entity expects to arise from the continuing use of an asset and from its disposal at the end of its useful life or expects to incur when settling a liability Impairment loss The estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life

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 following terms are mismatched with its definitions. Match the terms to its correct definitions.

Terms	Definitions
Carrying amount	The higher of an asset's fair value less costs to sell and its value in use
Cost	The cost of an asset or other amount substituted for cost, less its residual value
Depreciable amount	The amount by which the carrying amount of an asset exceeds its recoverable amount
Entity-specific value	The amount at which an asset is recognised after deducting any accumulated depreciation and accumulated impairment losses
Fair value	The amount of cash or cash equivalents paid or the fair value of other consideration given to acquire an asset at the time of its acquisition or construction
Recoverable amount	The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date
Residual value	The present value of the cash flows an entity expects to arise from the continuing use of an asset and from its disposal at the end of its useful life or expects to incur when settling a liability
Impairment loss	The estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life

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