Reference no: EM132774728

Problem 1: The fair value of an asset, as defined in the accounting standards, is:

Select one:

a. the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date, after deducting all the costs of that transfer.
b. the costs that would be incurred if the asset needed to be replaceD.
c. the costs incurred to purchase an asset and make it ready for use.
d. the price paid for an asset less any directly attributable costs.

Problem 2: Under current accounting standards preliminary expenses of forming a company must be treated as a:

Select one:

a. expense.
b. liability.
c. asset.
d. deduction from the proceeds of the share issue.