All of the Following Are True of Fair Value Accounting

question 162

Multiple Choice

All of the following are true of fair value accounting except

• A) GAAP requires trading and available-for-sale investments to be recorded at fair value
• B) fair value measurements have become more reliable
• C) the differences between original cost and fair value are reported in valuation allowance accounts
• D) fair values only affect balance sheet accounts

---

Definitions:

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases, indicating an inverse association.

Correlation Coefficients

Statistical measures that describe the extent to which two variables change together, indicating the strength and direction of a linear relationship between them.

Direction And Strength

In psychology, often refers to the orientation and intensity of behaviors or attitudes.

Darley And Latané

Darley and Latané are known for their research in psychology, notably the bystander effect, which studies the conditions under which people are more or less likely to help others in emergencies.