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.

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Definitions:

Sociability

The tendency to seek social interactions and exhibit enjoyment in engaging with others.

Cognitions

Mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Hostile Attribution

The tendency to interpret others' behaviors as having hostile intent, even when the behavior is ambiguous or benign.

Social Information-Processing

Model used to explain idiosyncratic ways of processing social information, such as use of a hostile attributional bias to interpret neutral social cues.