Which of the Following Is Not Assumed When Measuring the Fair

question 8

Multiple Choice

Which of the following is not assumed when measuring the fair value of an equity instrument?

• A)The market participant transferee will take on the rights and responsibilities associated with the instrument
• B)An entity's own equity instruments are transferred to a market participant at transfer date
• C)An entity's own equity instrument would remain outstanding
• D)The instrument would not be cancelled or otherwise extinguished on the measurement date.

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Definitions:

Acceptance

The process of recognizing and welcoming actual situations or facts without trying to change them.

Exposure

A therapeutic technique used in cognitive-behavioral therapy to treat anxiety disorders, which involves confronting the feared object, situation, or activity in a real or imagined way.

Psychotherapy

A treatment method for mental health disorders and emotional difficulties that involves talking to a psychologist or other mental health provider.

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception and inappropriate actions.