Question

Certain items in the financial statements are accounted for using Fair Market method of accounting, while other portions of the financial statements still use Historical accounting methods.

a) true
b) false

Answer 1

a) true

Step-by-step explanation:

Some Assets and Liabilities in Financial Statement use Fair market value method for certainty of their market value for which market price cannot be determined (due to absence of established market for those) and others are using Historical accounting methods to determine the value at which they are recognized or recorded. So the statement is True.