Which of the following statements is NOT a limitation associated with market valuation of balance sheet accounts?
A) It can be difficult to identify the market value of an asset, particularly if there are few transactions involving comparable assets.
B) The estimates of market value can involve complex financial modeling, and the resulting numbers can be open to manipulation and abuse.
C) Marking to market provides decision makers with a better chance of making the correct economic decision, given the information available.
D) Mark-to-market accounting can become inaccurate if market prices deviate from the "fundamental" values of assets and liabilities.

Question

Quizplus · Accepted Answer

This statement is not a limitation, but rather a potential benefit of market valuation. Limitations include the difficulty in identifying market value and the potential for manipulation and inaccuracies if market prices deviate from fundamental values.

Which of the Following Statements Is NOT a Limitation Associated