All of the Following Are Disadvantages of Fair Value Use

question 15

Multiple Choice

All of the following are disadvantages of fair value use except:

• A) fair values may not be readily obtainable.
• B) fair values may cause more fluctuations as change occurs from period to period.
• C) comparability between companies may be impacted by different fair value measurement.
• D) fair values can only be used on balance sheet accounts.

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Definitions:

Repairs

The actions taken to restore something damaged or malfunctioning to a good or working condition.

Deducted

Subtracted from a total amount, usually referring to amounts removed from income or expenses for the purpose of calculation.

Sued

The act of bringing a lawsuit against an individual or entity, claiming that they committed a wrong or injustice that should be remedied through legal action.

Evict Tenant

To evict a tenant means to legally remove a tenant from a rental property, typically due to violation of a rental agreement or non-payment of rent.