The majority of financial instruments are valued using
A) cost.
B) fair value estimates.
C) lower of cost or market.
D) realizable value.

Question

Quizplus · Accepted Answer

The majority of financial instruments are valued using fair value estimates to reflect the current market value of the asset or liability. This helps to provide more accurate and relevant information to financial statement users. However, some financial instruments may still be valued using other methods, such as cost or lower of cost or market. Realizable value is typically used for inventory and accounts receivable, and is not relevant in valuing financial instruments.

The Majority of Financial Instruments Are Valued Using