In Recognizing a Decline in the Fair Value of Short-Term

question 166

Multiple Choice

In recognizing a decline in the fair value of short-term share investments, an unrealized loss account is debited because

• A) management intends to realize this loss in the near future.
• B) the securities have not been sold.
• C) the share market is volatile.
• D) management cannot determine the exact amount of the loss in value.

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Definitions:

Legal

Legal pertains to matters related to laws, the system of rules that are created and enforced through social or governmental institutions to regulate behavior.

Unethical

Behaviors or actions that are morally wrong, not conforming to accepted standards of conduct.

Business Ethics

The use of ethics and ethical principles to solve business dilemmas.

Standards

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