The Fair Value Through Profit and Loss Method Requires That

question 3

Multiple Choice

The fair value through profit and loss method requires that:

• A)investments are measured as revenue.
• B)transaction costs are expensed when incurred.
• C)transaction costs are capitalized.
• D)transaction costs are amortized over the period of the investment.

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Definitions:

Uniformly Distributed

Uniformly distributed indicates that all outcomes in a data set or probability distribution have the same or nearly equal chance of occurring.

Standard Deviation

A tool to determine the degree of difference or dispersion within a batch of data.

Standard Normal

A type of normal distribution with a mean of 0 and a standard deviation of 1.

Random Variable

A numerical value variable resulting from random phenomena.