Question

GAAP currently employs a ""mixed attribute"" measurement model. The five measurement attributes are:"

a. Historical cost, fair value, settlement value, intrinsic value, and present value.
b. Historical cost, fair value, present value, replacement cost, and liquidation value.
c. Historical cost, amortized cost, fair value, intrinsic value, and settlement value.
d. Historical cost, amortized cost, fair value, replacement cost, and intrinsic value.

Answer 1

The correct answer is d. Historical cost, amortized cost, fair value, replacement cost, and intrinsic value.

Step-by-step explanation:

GAAP (Generally Accepted Accounting Principles) employs a mixed attribute measurement model, which means that a combination of different measurement attributes is used to determine the value of assets and liabilities.

The five measurement attributes used in GAAP are historical cost, amortized cost, fair value, replacement cost, and intrinsic value. These attributes allow for a more comprehensive and accurate representation of financial information.