Asked by Natalie Zavala on Jul 12, 2024

verifed

Verified

The contra-account Fair Value Adjustment is a(n)

A) offset account.
B) adjustment account.
C) valuation account.
D) opposite account.

Fair Value Adjustment

A financial reporting process that adjusts assets or liabilities to their current market value, rather than historical cost.

Valuation Account

A type of accounting balance that is used to adjust the value of a related account, often serving to decrease the value of the primary account.

Adjustment Account

A specific account used to adjust the value of related accounts to reflect accurate financial information.

  • Comprehend the demand and exposition of unrealized gains or losses on investments and their consequence on financial statements.
verifed

Verified Answer

AB
Alicia BowlesJul 17, 2024
Final Answer :
C
Explanation :
Fair Value Adjustment is considered a valuation account because it is used to adjust the carrying value of an asset or liability to its fair value.