Which of the following statements is true regarding the fair value option?

Multiple Choice

• If a company does not elect the fair value option, it still must disclose the fair value of all its notes receivable.

• A firm may choose the fair value option for either a single financial instrument or a group of financial instruments.

• Under U.S. GAAP, the only option a firm has is to value notes and accounts receivable is net realizable value.

• If a company does not elect the fair value option, it still must disclose the fair value of all its accounts receivable.