Which of the Following Is a Disadvantage to Using Fair

question 85

Multiple Choice

Which of the following is a disadvantage to using fair value to account for financial assets?

• A) GAAP requires fair values to be determined at the date the assets were bought, so different assets are evaluated at different dates.
• B) Fair value is never relevant information.
• C) Because there are not perfect markets for some assets, fair value may require some judgmental estimates.
• D) Fair value accounting ignores holding gains and losses.

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