Which of the Following Statements Would Not Be a Basis

question 88

Multiple Choice

Which of the following statements would not be a basis for misrepresentation?

• A)"This toothpaste is the best tasting around."
• B)"This house is built the way they used to build houses."
• C)"There is no merger pending for the company."
• D)All of the above are sufficient bases for misrepresentation.

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Definitions:

Straight-Line Method

The Straight-Line Method is a way of calculating depreciation of an asset, where the asset's cost is evenly spread over its useful life.

Other Than Temporary

Classification of impairments or losses indicating that the reduction in value is not expected to reverse in the near future.

Held To Maturity

A classification for investments in debt securities that the company has the positive intent and ability to hold until they mature.

Carrying Value

The book value of an asset or liability on a company's balance sheet, after accounting for depreciation, amortization, or impairment.