The Fair Value Accounting Adjustment

question 110

Multiple Choice

The fair value accounting adjustment:

• A)Affects both the balance sheet and the current period income statement.
• B)Is not made when the current market value of investments in marketable securities is higher than original cost.
• C)May result in either a gain or a loss to be reported in the current period income statement.
• D)Represents a departure from the cost principle.

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Definitions:

Additional Education

Refers to further formal or informal learning undertaken after completing a level of education, to enhance skills or gain new knowledge.

Workforce

The pool of individuals in a country or company eligible for and engaged in employment, including both employees and those seeking employment.

Discretionary Income

The amount of an individual's income left for spending, investing, or saving after taxes and personal necessities have been paid.

Fiscal Policy

Government policies related to taxation and spending that are used to influence a country's economic conditions.