FASB Statement 124,Accounting for Certain Investments of Not-For-Profit Organizations

question 86

Multiple Choice

FASB Statement 124,Accounting for Certain Investments of Not-for-Profit Organizations:

• A) Requires that investments in equity securities be carried at book value.
• B) Requires that investments in debt securities be carried at fair value.
• C) Requires that investments accounted for under the equity method be adjusted to fair value at the end of the accounting period.
• D) Requires that investments in consolidated subsidiaries be reported as permanently restricted.

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Definitions:

Binomial Probability

The probability of obtaining a fixed number of successful outcomes in a fixed number of trials in a binomial experiment.

Odds

The ratio of the probability of an event happening to the probability of it not happening; in gambling, it represents the amount won relative to the stake.

Unfriended

The act of removing someone from one's social networking friends list.

Probability

The quantification of the chance of an event happening, represented as a number from 0 to 1, with 0 meaning the event is impossible and 1 meaning the event is certain.