One of the key factors identified by Chambers in support of CoCoA is additivity.Which of the following does not support this view expressed by Chambers?
A)Using different measurement scales in financial statements renders them unable to provide practical meaning when the values are aggregated.
B)The valuation of all elements of the balance sheet at their money equivalents provides one rule that can be applied consistently by any company
C)The cash equivalent of assets can be quite different depending upon the procedure used in selling them
D)All of the above do not support the view that CoCoA has additivity.

Question

Quizplus · Accepted Answer

Additivity refers to the ability to aggregate different items meaningfully. Chambers supports CoCoA for its additivity, implying a consistent valuation method enhances this. Option C, highlighting variability in cash equivalent based on sale procedures, suggests inconsistency in valuation, thus not supporting the additivity aspect.

One of the Key Factors Identified by Chambers in Support