If a Company Chooses the Fair Value Option for an Asset

question 85

True/False

If a company chooses the fair value option for an asset or liability, all changes in the fair value of the asset (or liability), including unrealized gain and losses, will be included in net income.

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Definitions:

Market Price

Price prevailing in a competitive market.

Dynamic Inefficiencies

Inefficiencies that occur over time due to factors such as technological changes, market adjustments, or policy shifts, affecting long-term economic performance.

Pollution

Pollution refers to the introduction of harmful materials into the environment, including the air, water, and soil, which can damage the health of both the planet and its inhabitants.

Dry Cleaning Industry

The sector of the economy dedicated to cleaning fabrics that are either unsuitable for traditional laundering or require a more delicate handling.