The repricing model is based on an accounting world that reports asset and liability values at
A)their market value.
B)their book value.
C)their historic values or costs.
D)All of the above.
E)Answers B and C only.

Question

Quizplus · Accepted Answer

The repricing model is based on the accounting principle of reporting asset and liability values at their historical cost (book value). This means that the answer is not A because market value is not always reflected in the accounting statements. Therefore, the best choice is E as it reflects the true accounting principle behind the repricing model.

The Repricing Model Is Based on an Accounting World That