When measuring the investment of the firm, assets are often used. Select all that are issues with this measurement:Question 2 options: a)The book value of assets declines with use for sales (matching), which makes it appear that the same sales can be made with a smaller investment in assets in the future b)The firm has paid for these assets already (cash flow in the past) c)The market value of assets can vary d)Assets do not represent everything that is needed to make sales

Performance measurement in accounting is an important tool for monitoring and improving…

Answered: When measuring the investment of the…

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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When measuring the investment of the firm, assets are often used. Select all that are issues with this measurement:

Question 2 options:


a)	The book value of assets declines with use for sales (matching), which makes it appear that the same sales can be made with a smaller investment in assets in the future

b)	The firm has paid for these assets already (cash flow in the past)

c)	The market value of assets can vary

d)	Assets do not represent everything that is needed to make sales

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