When a Firm Does Not Adopt the Fair Value Option,it

question 84

Multiple Choice

When a firm does not adopt the fair value option,it

• A)need not disclose the fair value of its long-term notes receivable.
• B)still must disclose the fair value of its long-term notes receivable unless the reported value approximates fair value.
• C)still must disclose the fair value of its long-term notes receivable if the reported value exceeds fair value.
• D)may disclose the fair value of its long-term notes receivable if the reported value exceeds fair value,but such disclosure is not requireD.

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Definitions:

Scenario Analyses

A process of examining and evaluating possible events or scenarios the future could hold and their potential impacts on business operations.

Risk

The exposure to potential financial loss or uncertainty in the outcome of an investment.

Planning

Planning in a financial context involves the process of setting goals, developing strategies, and outlining tasks and schedules to achieve financial objectives efficiently.

Percentage of Sales Methods

A financial forecasting model that bases future year's projections for various financial items as a fixed percentage of the annual sales figure.