If a Company Elects to Use the Fair Value Option

question 157

True/False

If a company elects to use the fair value option for a financial asset at the initial acquisition date, unrealized gains and losses at year-end are reported as part of other comprehensive income.

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Definitions:

Van Purchase

Refers to the acquisition of a van, categorized as a fixed asset, involving cash or credit transaction.

Financial Statements

Official documentation of a company, individual, or entity's financial transactions and status, usually comprising the income statement, balance sheet, and statement of cash flows.

Internal Accounting Staff

Employees within an organization responsible for overseeing and managing financial records and transactions.

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions, overseeing the overall operations, and acting as the main point of communication between the board of directors and corporate operations.