2. Net realizable value measures asset value at how much it could be sold for, including net of any sales costs. Although more realistic perhaps, there is no objective measure for potential sale amount.

True

False

3. Mark-to-market is used to measure financial assets, and is based on values provided from financial markets. It is more accurate than measuring at cost, but subject to potential large swings during times of volatility.

True

False

4. Future profits measures asset value at how much it would cost to replace. Again, more realistic perhaps but less objective.

True

False

5. Replacement cost measures asset value at how much it would cost to replace. Again, more realistic perhaps but less objective.

True

False

6. The cash flow statement is divided into three sections: Cash flows from operating activities, cash flows from investing activities, cash flows from financing activities.

True

False

7. Operating statements show an organizations profitability, its sources, and uses of cash. Both are needed because the operating statement is prepared on the accrual basis.

True

False