Which of the Following Statements Is INCORRECT Regarding Fair Value

question 34

Multiple Choice

Which of the following statements is INCORRECT regarding fair value adjustments for investments?

• A) Both FV-NI investments and FV-OCI investments could include equity investments or investments in debt securities.
• B) FV-OCI investments exclude debt securities.
• C) At each period end, an estimate is made of the fair value of both FV-NI and FV-OCI investments.
• D) An adjusting entry is required to record a holding gain or loss on FV-NI investments.

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