Which statement is incorrect regarding classification of financial assets?   a. An entity can classify financial assets that meet the amortized cost criteria as at FVPL if doing so eliminates or reduces an accounting mismatch.   B. In order to be classified at fair value through OCI, a debt instrument needs to have either simple principal and interest cash flows or be held in a business model in which both holding and selling financial assets are integral to meeting management’s objectives.   C. An investment in equity instrument may not be classified as financial asset subsequently measured at amortized cost.   D. Reclassifications of financial assets are only permitted on the change of an entity’s business model and are expected to occur only infrequently.

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Q: Which of the following is an assumption made in the preparation of the financial statements?

A: Which of the following is an assumption made in the preparation of the financial statements? Answer…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.