The Use of Fair Value to Report Assets

question 206

Multiple Choice

The use of fair value to report assets

• A) is not allowed under GAAP or IFRS.
• B) is required by GAAP and IFRS.
• C) is increasing under GAAP and IFRS but GAAP has adopted it more broadly.
• D) is increasing under GAAP and IFRS but IFRS has adopted it more broadly.

---

Definitions:

Outstanding Checks

Checks that have been written and recorded in the issuing entity's accounting system but not yet cashed or cleared by the bank.

Bank Statement

A document issued by a bank detailing all transactions in an account over a specified period, including deposits, withdrawals, and fees.

Bank Reconciliation

The process of comparing and matching figures from the accounting records against those presented on a bank statement to ensure they are consistent and accurate.

Company's Records

Documentation that contains the financial and operational information of a company.