Which of the Following Statements Is Incorrect When a Company

question 18

Multiple Choice

Which of the following statements is incorrect when a company chooses the fair value option for its receivables?

• A) Receivables are recorded at fair value in the statement of financial position.
• B) Unrealized holding gains and losses from fair value adjustments are reported as a component of comprehensive income.
• C) The International Accounting Standards Board believes that fair value measurement for financial instruments provides more relevant and understandable information than historical cost.
• D) An unrealized holding gain or loss is the net change in the fair value of the receivable from one period to another, exclusive of interest revenue recognized but not recorded.

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Definitions:

Executive Control System

The component of the brain responsible for regulating attention, making decisions, and managing cognitive processes required for goal-directed behavior.

Sensory Memory

The shortest-term element of memory which allows individuals to retain impressions of sensory information after the original stimuli have ended.

Short-Term Memory

A capacity for holding a small amount of information in mind in an active, readily available state for a short period of time.

Long-Term Memory

A type of memory capable of storing information for an extended period, from hours to decades.