Deck4

Question 1

In determining Fair Value in the most advantageous market, the amount you get for the asset should be adjusted for (a) transaction cost (b) transportation cost (c) both

Answer 1

(b) transportation cost - not adjusted for transaction cost

Question 2

Fair value helps to increase (a) consistency (b) comparability (c) both

Answer 2

(c) both

Question 3

Inventory valued at LCM is exempt from Fair Value measurement guidance T or F

Answer 3

True

Question 4

Share (stock) based payments are exempt from Fair Value measurement guidance T or F

Answer 4

True

Question 5

If Fair Value is chosen by a company, it must recognize an increase in Fair Value for the year. T or F

Answer 5

True