Which of the Following Is an Advantage of Fair Value

question 35

Multiple Choice

Which of the following is an advantage of fair value accounting for financial assets over historical cost accounting?

• A) Asset values tend to be more relevant.
• B) "Gains trading" to manage earnings is less likely.
• C) All the assets are measured at the same date, making adding the values together mathematically meaningful.
• D) All of the above.

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Definitions:

Theft

The act of stealing; the unlawful taking of someone else’s property without their consent.

Cognitive Dissonance

A psychological discomfort experienced by an individual who holds contradictory beliefs, values, or attitudes, especially regarding personal decisions and behavior.

Psychological Discomfort

A state of emotional or mental unease, often the result of cognitive dissonance, anxiety, or other psychological factors.

Choices

The act of selecting among multiple options or paths based on preferences or circumstances.