At acquisition date,the cost price and fair value should be fairly equivalent.However,with the passage of time:
A)the fair value and cost price of an item can diverge
B)the fair value and cost price of an item remain fairly constant
C)the fair value is always greater than the cost price
D)the cost price is always greater than the fair value

Question

Quizplus · Accepted Answer

As time passes, the fair value and cost price of an item can diverge due to changes in market conditions, economic factors, and other factors that affect the value of the asset. Therefore, the fair value may increase or decrease in relation to the cost price, leading to a difference between the two values.

At Acquisition Date,the Cost Price and Fair Value Should Be