In Recognizing a Decline in the Market Value of a Trading

question 24

Multiple Choice

In recognizing a decline in the market value of a trading investment, Loss on Fair value adjustment account is debited

• A) because management intends to realize this loss in the near future.
• B) to reflect the fair value of the investment on the balance sheet.
• C) because the company is no longer a going concern.
• D) because there is a permanent decline in the fair value.

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Definitions:

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