The Statement Concerning the Measurement of Financial Instruments That Is

question 19

Multiple Choice

The statement concerning the measurement of financial instruments that is not true is:

• A)The decision usefulness objective is an argument for valuation at fair value
• B)Since the 1980's the FASB has required fair value measurement
• C)The FASB has followed the IASB's lead in standard setting for financial instruments
• D)IAS 39 is the standard on financial instruments

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Definitions:

Markdown

A reduction from the original or listed price of an item, often used as a strategy to increase sales or clear out inventory.

Timing

The selection of the most appropriate moment to execute an action in order to maximize its effectiveness or success.

Final Selling Price

The ultimate price at which a product or service is sold to the consumer, including all discounts, promotions, and negotiations.

Original Markup

The difference between the cost of a product and its initial selling price, set to achieve a desired profit margin.