Which of the Following Is Not True About the Fair

question 129

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 the above are true.

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Definitions:

Interest

The expense involved in obtaining a loan, conventionally denoted as an annual percentage rate.

Retirement Account

A financial arrangement designed to replace employment income upon retirement, often offering tax benefits to encourage saving for the retirement years.

Retire

The process of leaving one's job and ceasing to work, typically due to age or health reasons.

Interest Rate

The percentage of a sum of money charged for its use, reflecting the cost of borrowing money or the return on invested funds.