An Argument Against Fair Value Measurement in Accounting Is

question 14

Multiple Choice

An argument against fair value measurement in accounting is:

• A)It can lead to volatility in earnings.
• B)Market prices are too objective.
• C)It does not allow enough professional judgement.
• D)It reflects the value of the item today.

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Definitions:

Market Control

The influence of market competition on the behavior of organizations and their members.

Market Competition

The rivalry among companies selling similar products and services with the goal of achieving revenue, profit, and market share growth.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 aimed at protecting investors from fraudulent accounting activities by corporations.

Top Executives

Senior-level managers and officers in an organization who are responsible for overseeing its strategic direction and making high-level decisions.