What Is the Primary Objective of the Fair Value Method

question 20

Essay

What is the primary objective of the fair value method of accounting for an investment?

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Definitions:

Check Register

A record book or digital log used to track checks written, deposited funds, and current account balances.

Voucher Journal

A record that details every financial transaction of a business, paired with the documentation that supports the transaction as a part of the accounting system.

Voucher System

A control mechanism in accounting that ensures all purchases and expenditures are properly authorized before payment is made.

Petty Cash Fund

A small amount of cash kept on hand for minor or incidental expenses.