If the Fair Value Adjustment - Trading Account for Trading

question 77

Multiple Choice

If the Fair Value Adjustment - Trading account for trading debt investments has a debit balance,it is ________.

• A) considered to be a contra account
• B) subtracted from the Trading Debt Investment account to determine carrying value
• C) added to the Trading Debt Investment account to determine carrying value
• D) reported in the other income and expenses section of the income statement

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Definitions:

Behavioral Learning

The theory that explains how individuals acquire and change their behaviors over time based on their responses to environmental stimuli.

Response

The reaction or feedback received from a target audience or market following a marketing initiative, campaign, or product release.

Cue

A signal or stimulus that prompts an individual to take action or which influences their behavior in a particular way.

Stimulus

Any event or situation that evokes a response or reaction, in psychology often referred to in the context of stimulus-response theory.