The Fair Value Adjustment Account Can Only Have a Credit

question 56

True/False

The Fair Value Adjustment account can only have a credit balance or a zero balance.

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Definitions:

Current Liabilities

Obligations of a company that are due to be paid within one year.

Long-Term Debt

Borrowings and financial obligations lasting over one year that are used to fund a company's operations, investments, or acquisitions.

Long-Term Liability

A financial obligation due after more than one year.

Current Liability

Short-term financial obligations that are due within one year or within a company's operational cycle, whichever is longer.