The alternative that is not an argument in favour of exit price accounting is:
A)Valuing all elements in the financial statements at their money equivalents provides one rule that can be applied consistently.
B)The financial statements are allocation-free
C)Rather than measuring past events the method measures those that might happen if a firm does something other than what was planned
D)Exit price accounting involves references to real-world examples therefore it is more grounded in reality than historical cost accounting

Question

Quizplus · Accepted Answer

Exit price accounting focuses on the current exit prices to value assets and liabilities, rather than speculating on future actions a firm might take. Choices A, B, and D describe characteristics or perceived benefits of exit price accounting, while C incorrectly suggests it measures hypothetical future actions rather than current or potential exit values.

The Alternative That Is Not an Argument in Favour of Exit