When Fair-Value Is Not Determinable, Investments May Be Carried at Cost

question 12

True/False

When fair-value is not determinable, investments may be carried at cost.

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Definitions:

Availability Bias

A cognitive bias that causes people to overestimate the likelihood of events based on their availability in memory, often leading to skewed decision-making.

Belief Perseverance

The tendency to cling to one's initial belief even after receiving new information that contradicts or disconfirms the basis of that belief.

Confirmation Bias

A predisposition to identify, comprehend, prioritize, and recollect facts in ways that corroborate one’s existing beliefs or suppositions.

Overconfidence Bias

The tendency for an individual to overestimate their abilities, knowledge, or performance capabilities.