Different measurement models affect the determination of income and expenses.The different measurement models include:
A) Historical cost, market value, present value.
B) Historical cost, direct costs, indirect costs.
C) Current cost, historical cost, overhead cost.
D) Market value, opportunity cost, historical cost.
E) None of the given answers.

Question

Quizplus · Accepted Answer

Historical cost is the original cost of the asset or liability, while market value is the value that the asset or liability would fetch on the market. Present value is the discounted cash flows that the asset or liability is expected to generate. Choosing these measurement models would give a comprehensive view of income and expenses.

Different Measurement Models Affect the Determination of Income and Expenses