If current cost accounting (CCA)is greater than current cash equivalents (CCE)and CCE is greater than net present value requirement (NPVR),it implies that assets have value in use and the firm should maintain its current operations.

Question

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If CCA is greater than CCE, it indicates that the assets have significant value in use and are being used to generate revenue. If CCE is greater than NPVR, it implies that the firm has enough cash to meet its current financial obligations. Therefore, the combination of these two factors suggests that the firm should continue its current operations as its assets are generating sufficient revenue and it has enough cash to meet its financial obligations.

If Current Cost Accounting (CCA)is Greater Than Current Cash Equivalents