Fair Value Option for Reporting Some Liabilities Is Normally Chosen

question 118

Multiple Choice

Fair value option for reporting some liabilities is normally chosen ________.

• A)at the time of borrowing and is irrevocable
• B)on the first balance sheet and is revocable
• C)at the end of each year and is revocable
• D)at the time of borrowing and is revocable

---

Definitions:

Economic Stability

A state in which an economy experiences steady growth, low inflation, and low unemployment, leading to confidence in the financial system.

Opportunity Cost

The price paid for missing out on the alternative option when deciding.

Specialized Tools

Instruments or devices designed for specific tasks or industries, enabling more efficient and precise work in professional and technical fields.

Transaction Cost

Expenses incurred when buying or selling goods or services, beyond the price of the goods or services themselves.