Which of the Following Is Not True About the Fair

question 69

Multiple Choice

Which of the following is not true about the fair value option?

• A)the fair value option is irrevocable.
• B)the fair value option must be elected for all shares of an investment in a particular company.
• C)electing the fair value option for held-to-maturity investments simply reclassifies those investments as trading securities.
• D)All of these are true.

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Definitions:

Holt-Winters

A forecasting method that addresses seasonality by applying exponential smoothing to both the level and the trend of the data.

Qualitative Methods

Research techniques that collect data that is not in numerical form such as interviews, observations, and textual analysis.

Judgmental Forecasting

A forecasting method that relies on intuitive judgments, opinions, and subjective estimates rather than on rigorous mathematical models.

Shiller Real Home Price Index

An index that tracks changes in the price of residential real estate in the United States, adjusting for inflation.