Which of the Following Statements Is Incorrect

question 16

Multiple Choice

Which of the following statements is incorrect?

• A)Under 'mark to market', financial instruments are revalued to their market price each reporting date
• B)'Market value' usually means the net fair value of a financial asset or financial liability having the same risk profile
• C)'Net present value' can be used to measure both assets and liabilities
• D)'Current cash equivalent' is only applicable to current assets

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Definitions:

Revenue

Income that a company receives from its normal business activities, usually from the sale of goods and services to customers.

Closing Entries

Closing entries are journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thereby resetting the temporary accounts for the next period.

Withdrawal Account

An account that tracks the money taken out of a business by its owners for personal use.

Capital

Represents the financial resources used by a business to fund its operations and growth, often in the form of money, assets, or equity.