Which of the Following Is Correct with Respect to the "Fair

question 110

Multiple Choice

Which of the following is correct with respect to the "fair value model"?

• A)A model that recognizes changes in value of the asset in the statement of changes in equity.
• B)A model that recognizes changes in value of the asset in the revaluation surplus account.
• C)A model that recognizes changes in value of the asset in other comprehensive income.
• D)A model that recognizes changes in value of the asset in profit or loss.

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Definitions:

Credit Bureaus

Organizations that collect and maintain individual credit information, supplying it to creditors to help them decide whether to lend money.

Credit Applicant

An individual or entity that applies for a loan or credit from a financial institution or lender.

Accounts Receivable

Financial obligations customers have towards a business for utilized or received goods and services that remain unpaid.

Creditworthy Customers

Clients deemed capable of paying back credit extended to them due to their solid financial standing.