Which of the Following Is Not Assumed When Measuring the Fair

question 8

Multiple Choice

Which of the following is not assumed when measuring the fair value of an equity instrument?

• A)The market participant transferee will take on the rights and responsibilities associated with the instrument
• B)An entity's own equity instruments are transferred to a market participant at transfer date
• C)An entity's own equity instrument would remain outstanding
• D)The instrument would not be cancelled or otherwise extinguished on the measurement date.

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Definitions:

Groups

Groups consist of two or more individuals interacting and working together towards common goals or sharing common interests.

Ineffective

Lacking the ability or qualities to produce the intended effect.

Guilt-proneness

The predisposition of an individual to feel guilt for wrongdoing, reflecting a sensitivity to the ethical or moral implications of their actions.

Higher

Typically used to denote something that is above average or superior in quality, position, or importance.