The Valuation Principle of "Fair Value Accounting" Applied to Investments

question 69

Multiple Choice

The valuation principle of "fair value accounting" applied to investments classified as available-for-sale securities:

• A)Affects the current period income statement,but not the balance sheet.
• B)Enhances usefulness of the balance sheet in evaluating the financial position of a business.
• C)Applies to marketable securities and inventories.
• D)Requires a corporation to adjust its capital stock account to reflect current market value of its outstanding capital stock.

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Definitions:

Depleted

A state of significant reduction in quantity or energy level, often referring to resources like minerals, fossil fuels, or other natural reserves that have been heavily consumed.

Aldo Leopold

An American author, philosopher, scientist, ecologist, forester, conservationist, and environmentalist, known for his book "A Sand County Almanac."

Humans

Homo sapiens, the only extant members of the hominid family, characterized by their use of language, ability to create complex tools, and establishment of social structures.

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates, including natural, social, and built factors.