All of the Following Are Difficulties Encountered in Determining Fair

question 52

Multiple Choice

All of the following are difficulties encountered in determining fair values except:

• A) the need to make assumptions about the effect of technological and other improvements when using the prices of new assets currently available on the market in the valuation process
• B) the need to identify comparable assets currently available in the market to value assets in place
• C) the absence of U.S.GAAP and IFRS standards related to reporting long-lived assets
• D) the absence of active markets for many used fixed assets, particularly those specific to a particular firm's needs

---

Definitions:

Term of Maturity

The length of time until the principal amount of a bond or other debt instrument must be repaid.

Corporate Bond

A type of debt security issued by corporations to finance their operations, infrastructure, and expansion plans, with the promise to pay back with interest.

Long-Term Bond

A long-term bond is a debt security with a maturity of typically more than 10 years, used by corporations and governments to raise large amounts of capital.

Medium-Term Bond

A bond with a maturity period typically ranging from 5 to 10 years, serving as an investment option between short-term and long-term bonds.