Which of the Following Transactions Is Consistent with Recognizing Value

question 29

Multiple Choice

Which of the following transactions is consistent with recognizing value changes on the balance sheet and income statement when they are realized in a market transaction?

• A) Selling land at a cost greater than its original purchase price.
• B) Recording an increase in the fair value of investments at year end.
• C) Translating foreign operations accounted for in Yen back to U.S.dollars in order to prepare consolidated financial statements.
• D) Writing down the value of an asset due to obsolescent.

---

Definitions:

Four-Post Design

A type of lift or rack in automotive repair shops or garages featuring four posts that provide stability and support for a vehicle during maintenance or inspections.

VIN Number

The Vehicle Identification Number, a unique code used to identify individual motor vehicles.

Country of Origin

The country where a product was manufactured or produced, often used in trading and customs for determining tariffs and indicating quality.

Manufacturer

A company that produces goods in large quantities.