The Fair Value Method of Accounting for Investments Was Proposed

question 12

Multiple Choice

The fair value method of accounting for investments was proposed to overcome which issues associated with the prior use of lower of cost or market?

• A)reliability and liquidity
• B)relevance and liquidity
• C)reliability and financial flexibility
• D)relevance and financial flexibility

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Definitions:

B.F.Skinner

An American psychologist known for his work in behaviorism, particularly the development of the theory of operant conditioning, which relates behaviors to their consequences.

Operant Conditioning

A learning framework in which the force of a behavior is altered by the administration of rewards or corrective actions.

Spontaneous Recovery

A conditioned response that had been eliminated reemerges after a time without any contact with the stimulus that initially created it.

Respondent Behavior

Behavior that occurs in response to specific stimuli and is usually conditioned by previous experiences.