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:

Discounts

A reduction from the usual cost of something, often applied to prompt payment or to certain categories of customers.

Increase

A rise in value, quantity, or some other measure.

Trade Discount

A reduction from the list price given by a seller to a buyer, often based on the volume of the transaction or to incentivize early payment.

Bank

A financial institution licensed to receive deposits and make loans, it may also provide financial services such as wealth management, currency exchange, and safe deposit boxes.