Which of the Following Statements Is Not True of Fair

question 147

Multiple Choice

Which of the following statements is not true of fair value option?

• A) Receivables are recorded at fair value in the financial statements.
• 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.

---

Definitions:

Social Knowledge

Knowledge that is shared, distributed, and constructed through social interactions and cultural practices among individuals and groups.

Organizational Culture

The shared beliefs, values, norms, and practices that guide and inform the actions and behaviors of the members of an organization.

Navigate

To plan and direct the course of a journey, or metaphorically, to find one's way through complex situations or challenges.

Interpretivism

An approach in social science that emphasizes the understanding of the subjective meaning of human experiences.