One Reason to Use an Associative Entity Is If the Associative

question 92

True/False

One reason to use an associative entity is if the associative entity has one or more attributes in addition to the identifier.

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Definitions:

Fair Value

An estimate of the price at which an asset or liability could be traded in a fair transaction between willing parties, other than in a forced or liquidation sale.

Unrealized Gain

A profit that exists on paper resulting from an investment that has not yet been sold for cash, indicating an increase in value of the asset.

Equity Method

An accounting technique used to record an investor's proportional share of the associate company's earnings and losses.

Accounting Change

Any significant alteration in accounting policies, estimation methods, or reporting practices that impacts the financial statements of a company.