Question

What are the measurement techniques used to disclose assets and liabilities?

1) Historical cost
2) Fair value
3) Net realizable value
4) Present value

Answer 1

The measurement techniques used to disclose assets and liabilities in financial accounting include historical cost, fair value, net realizable value, and present value.

Step-by-step explanation:

The measurement techniques used to disclose assets and liabilities in financial accounting include:

1. Historical cost: This method records assets and liabilities at their original purchase price or acquisition cost.
2. Fair value: This method measures assets and liabilities based on their current market value.
3. Net realizable value: This method measures assets based on the estimated amount the company will receive upon selling or disposing of them.
4. Present value: This method measures assets and liabilities based on their expected future cash flows discounted to their present value.