Which of the following are correct?

Which of the following are correct?

I. The cost method does not represent a departure from historical cost.

II. The equity method is consistent with valuation at market value.

a. I

b. II

c. Both I and II

d. Neither I nor II

2 Answers

  • 1 decade ago
    Favorite Answer

    I. is circular, and II. merely repeats the obvious. I. essentially says that "a cost method is based on cost." II. says that "market value is a value." And besides, there's no context: the "equity method of WHAT"? And please don't tell us that it's a method of determining value. This is what I call "Garbage Management and Presentation Prose"; I lived with it for 39 years, and every company I worked for went out of business within 5 years of the day they started using it. Are they still teaching this crap at University?

  • 1 decade ago


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