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12 February, 21:29

All of the following are true of the effect of fair value accounting on the financial statements except a. changes in the fair value of trading securities are recognized on the income statement b. any difference between the original cost or the prior period's fair value must be recorded c. changes in the fair value of available-for-sale securities are recognized on the income statement d. valuation allowance accounts are reported on the balance sheet

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  1. 12 February, 23:06
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    Option C

    Explanation:

    All of the following are true of the effect of fair value accounting on the financial statements:

    option c. changes in the fair value of available-for-sale securities are recognized on the income statement. is correct.

    Reasonable worth bookkeeping is a monetary detailing approach, otherwise called the "mark-to-advertise" bookkeeping practice, under proper accounting rules (GAAP). Utilizing reasonable worth bookkeeping, organizations measure and report the estimation of specific resources and liabilities based on their real or assessed reasonable market costs. Changes in resource or risk esteems after some time produce hidden additions or misfortunes for the advantages held and liabilities extraordinary, expanding or diminishing total compensation, just as value to be determined sheet.
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