If the Fair Value of Equity Securities Is Not Determinable

question 152

Multiple Choice

If the fair value of equity securities is not determinable and the equity method is not appropriate, the securities should be reported at:

• A) Amortized cost.
• B) Cost.
• C) Consolidated value.
• D) Net present value.

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Definitions:

Ethical Issue

a problem or situation that requires a person or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).

Counterfeit Goods

Fake products that are made to look genuine in order to deceive consumers.

Misleading Warranties

Guarantees or promises made by a seller that are untrue or deceptive, leading consumers to have incorrect expectations about a product.

Quality/Design

The standard of something as measured against other things of a similar kind, and the process of conceiving and planning the structure and functionality of products.