If the Fair Value of a Trading Security Declines for a Reason

question 139

Multiple Choice

If the fair value of a trading security declines for a reason that is viewed as "other than temporary",

• A)the investment is not written down to fair value.
• B)the investment is written down to fair value, and a special "impairment loss" is recognized in net income.
• C)the investment is written down to fair value, and the impairment loss is recognized in accumulated other comprehensive income.
• D)the investment is treated the same way it would be treated if the decline in fair value was viewed as temporary.

---

Definitions:

Strategic Plan

A systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.

Conduct Research

The systematic investigation into and study of materials, sources, or subjects in order to establish facts and reach new conclusions.

Implementation

The process of putting plans, policies, or strategies into action to achieve predetermined goals.

Measure Progress

The process of evaluating the advancement and effectiveness of an activity or initiative against predefined benchmarks or goals.