Reporting financial assets and liabilities at fair values also is referred to as:
A) historical cost.
B) acquisition cost.
C) mark-to-market.
D) mortgage-backed cost

Question

Quizplus · Accepted Answer

Reporting financial assets and liabilities at fair values using current market prices is called mark-to-market (MTM) accounting. This means that the value of an asset or liability is adjusted to reflect its current market value or fair value. MTM is used to ensure that financial statements provide an accurate representation of a company's financial position.

Reporting Financial Assets and Liabilities at Fair Values Also Is