By and Large,what Is the Cause of Unintentional Rating Errors

question 31

Multiple Choice

By and large,what is the cause of unintentional rating errors?

• A)Discipline
• B)Communication
• C)Motivation
• D)Cognitive bias

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Definitions:

Fair Value Adjustments

Adjustments made to the carrying value of an asset or liability to reflect its current market value.

Pre-acquisition Equity

The equity value of a company before being acquired by another entity, used to assess the financial status and baseline worth of the target company.

Revaluation Surplus

An increase in the carrying amount of an asset, recognized in equity, when its fair value exceeds its carrying amount.

Pre-acquisition Entry

An accounting entry made to adjust the values of the acquirer's and acquiree's assets and liabilities to fair value at the acquisition date.