The Major Disadvantages of Market-Value Accounting Include

question 55

Multiple Choice

The major disadvantages of market-value accounting include:

• A) the difficulty in estimating the current value for some assets.
• B) the difficulty in applying some of the valuation models used to estimate market values.
• C) the resulting numbers are potentially open to abuse.
• D) All of the above are disadvantages of market-value accounting.

---

Definitions:

W-2 Income

Earnings reported on a Form W-2 by employers, indicating the total wages paid and taxes withheld for an employee.

Income Tax

A tax imposed by governments on individuals or entities based on their income or profits.

Employers Withhold

The practice by employers of deducting certain amounts from employees' wages for tax purposes before they are paid.

Tax Liability

The total amount of tax that an individual or corporation is legally obligated to pay to a taxing authority.