TRUE/FALSE

1.Assessment measures are not concerned with particular attributes of objects.

2.Prediction measures are concerned with factors that may be indicative of future conditions.

3.Timeliness and cost are pertinent to assessment measures but are not pertinent to prediction measures.

4.All accounting measurements are of either the assessment or the prediction variety.

5.The need for information on a timely basis may conflict with cost constraints in some situations.

6.The terms calculation and measurement both refer to the valuation of a real phenomena or attribute.

7.Calculations attempt to simulate or come as close as possible to the measurement of real phenomena or attributes.

8.FIFO and LIFO measure of cost of goods sold and inventories are examples of calculations rather than measurements.

9.There are often trade-offs between objectivity and the usefulness of numbers generated by the measurement process.

10.Measurement is an integral part of accounting theory.

11.Throughout the financial history of the United States, current value has been the accepted valuation system for published financial statements.

12.The discounted cash flow approach can be used to determine an objective measurement for most assets and liabilities.

13.A general price-level adjustment refers to the purchasing power of the monetary unitary unit relative to all goods and services in the economy.

14.Both exit value and replacement cost are valuation systems that fall into the current value category.

15.The principal argument used to justify the replacement cost system over exit values is that if the great majority of the firm’s assets were not already owned it would be economically justifiable to acquire them.