Which of the Following Is Not True Regarding the Fair

question 91

Multiple Choice

Which of the following is not true regarding the Fair Value Adjustment - Trading account?

• A) It is a valuation allowance account.
• B) It allows the investment account to maintain a record of the investment cost.
• C) It should have a credit balance.
• D) Its balance is carried forward to future accounting periods.

---

Definitions:

Adrenocorticotropic Hormone

Adrenocorticotropic hormone (ACTH) is a peptide hormone produced by the anterior pituitary gland that stimulates the adrenal cortex to release cortisol and other steroid hormones.

Steroid Hormones

Biologically active molecules derived from cholesterol that play crucial roles in various body functions, including growth, metabolism, and immune response.

Cholesterol

A waxy, fat-like substance found in the cells of animals that is essential for the formation of cell membranes, certain hormones, and vitamin D.

Amino Acids

Organic compounds that serve as the building blocks of proteins, consisting of both an amino group and a carboxyl group.