首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
Accounting information is expressed primarily in monetary terms. The monetary unit is the prime means of measuring assets. This
Accounting information is expressed primarily in monetary terms. The monetary unit is the prime means of measuring assets. This
admin
2013-12-25
62
问题
Accounting information is expressed primarily in monetary terms. The monetary unit is the prime means of measuring assets. This measure is not surprising given that money is the common denominator in business transactions. In the United States, the monetary unit is the dollar; in Great Britain, the pound sterling; in Japan, the yen. The stable-monetary-unit concept provides an orderly basis for handling account balances to produce the financial statements.
Unlike a liter, a foot, and many other measurements, the value of the monetary unit may change over time. Most of us are familiar with inflation. Groceries that cost $50 three years ago may cost $60 today. The value of the dollar changes. In view of the fact that the dollar does not maintain a constant value, how does a business measure the worth of assets and liabilities acquired over a long span of time? The business records all assets and liabilities at cost. Each asset and each liability on the balance sheet is the sum of all the individual dollar amounts added over time. For example, if a company bought 100 acres of land in 1975 for $60,000 and another 100 acres of land in 1992 for $300,000, the asset of land on the balance sheet carries a $360,000 balance, and the change in the purchasing power of the dollar is ignored. The stable-monetary-unit concept is the accountant ’ s basis for ignoring the effect of inflation and making no restatements for the changing value of the dollar. Let’ s look at the short-comings of this concept. Suppose another company paid $ 600,000 for the same 200 acres of land in 1992. Its land would be the same as the preceding company ’ s land, but its balance sheet would show a much higher amount for the land. How do we compare the two companies’ balance sheets? The comparison based on the stable-monetary-unit concept may not be valid because mixing dollar values at different times is like mixing apples and oranges.
What does an asset mean on the balance sheet?
选项
A、It means all the assets recorded in a period of time.
B、It means the sum of all the individual asset amounts added over time.
C、It means the individual dollar amount.
D、It means accounting information expressed in special terms.
答案
B
解析
文章第二段提到The business records all assets…individual dollar amounts added overtime.资产在资产负债表上通常以单个资产的总和来呈现。
转载请注明原文地址:https://www.kaotiyun.com/show/Wmid777K
本试题收录于:
FECT综合(现代金融业务)题库金融英语(FECT)分类
0
FECT综合(现代金融业务)
金融英语(FECT)
相关试题推荐
YouareinterestedinClassicalMusic,soyoucanwatchTVat______.
Mr.Reeceisinterestingoldman.Mr.Reeceworked【C1】______afarm.Heandhiswife【C2】______alotofthingsandtheyhadsomec
Mr.Reeceisinterestingoldman.Mr.Reeceworked【C1】______afarm.Heandhiswife【C2】______alotofthingsandtheyhadsomec
In1826,aFrenchmannamedNiepceneededpicturesforhisbusiness.Buthewasnotagoodartist.Soheinventedaverysimplec
Vacation(休假)timecanbeassimpleasjusttimeawayfromwork.Youmayjustwantto【C1】______homeanddonothing.Thereisnothi
NarberthLibraryoffersyoupleasurereadingandagreatnumberofinformationservices.TheLibrarywasbuiltin1921byamemb
NarberthLibraryoffersyoupleasurereadingandagreatnumberofinformationservices.TheLibrarywasbuiltin1921byamemb
Ifatradedebtorof$20,000hasbeenwronglypostedtothecreditofthetradecreditor,buthasbeencorrectlyenteredinthe
Anirrevocablecreditmaybecancelledatanytimeuptothemomenttheadvisingbankpays.
随机试题
孔隙度是计算油田储量和评价油层特性的一个重要指标,通常用的是绝对孔隙度。()
甲、乙、丙三人共同伤害被害人,检察机关对甲和乙提起公诉,对丙做了不起诉处理。被害人欲提起附带民事诉讼,下列说法哪些是正确的?
托儿所、幼儿园服务用房的设置,正确的是:(2010年第42题)
银行依法为单位、个人在银行开立的()保密,维护其资金的自主支配权。
对不予禁止的经营者集中,国务院反垄断执法机构可以决定附加减少集中对竞争产生不利影响的限制性条件。其中,限制性条件包括()。
注册会计师通过对内部控制的了解,通常难以得出的结论是()。
教师在教学过程中,既能注意讲授内容又能观察学生,维持课堂纪律,这属于教师注意力的()特征。
石灰水:氢氧化钙( )。
A他说得越来越好了。B我下星期一就还你。C你看,这孩子长得真像他爸爸。D你看见我那件衬衫了吗?我放椅子上的那件。E当然。我们先坐公共汽车,然后换地铁。F我们一共8个人。例如:你知道怎么去那儿吗?(E)李云,这本书可以借给我看看吗?()
Peoplepreferpayinglargesumsofmoney______theirlifeworkdestroyedbygangsters.
最新回复
(
0
)