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    Question

    What is the principle of fair value

    accounting?
    A Assets and liabilities should be valued based on their market value Correct Answer Incorrect Answer
    B Assets and liabilities should be valued based on their historical cost Correct Answer Incorrect Answer
    C Assets and liabilities should be valued based on their book value Correct Answer Incorrect Answer
    D Assets and liabilities should be valued based on their replacement cost Correct Answer Incorrect Answer

    Solution

    The principle of fair value accounting requires assets and liabilities to be valued based on their market value.

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