Which of the Following Is True of the Fair Value

question 120

Multiple Choice

Which of the following is true of the Fair Value Adjustment account for trading investments?

• A)It will always have a credit balance.
• B)It will always have a debit balance.
• C)It is considered as an adjunct account if it has a credit balance.
• D)It is considered as an adjunct account if it has a debit balance.

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Definitions:

Ordinary Course

Activities or transactions that are regular, customary, and in keeping with the normal operations of a business or individual’s day-to-day life.

Durable Goods

Consumer goods that have a long life span (over three years) and are used over time, such as cars or appliances.

Farm Products

Goods that are derived from agriculture, including crops and livestock.

Financing Statement

A document filed to give public notice that a lender has a security interest in the collateral offered by a borrower.