Which of the Following Statements Is Not Accurate with Respect

question 79

Multiple Choice

Which of the following statements is not accurate with respect to the reporting requirements regarding the fair value option?

• A)Firms may elect the fair value option for a single eligible instrument without electing it for other identical instruments.
• B)Once the choice is made to adopt the fair value option,the decision is irrevocable.
• C)Financial statement disclosures must include management's rationale for electing the fair value option.
• D)The fair value option is not available for security investments that are accounted for using the equity methoD.

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Definitions:

NonTaxable Income

Income that is not subject to taxation by the IRS or state tax authorities; examples include certain gifts, inheritances, and some types of insurance payouts.

Compensation

This represents payment or benefits provided to an employee or executive by an employer for services rendered.

Injuries

Physical harm or damage to a person's body.

Life Insurance Proceeds

The money paid out by a life insurance company to the beneficiary upon the insured's death.