Asked by Olympia Thompson on May 06, 2024
Verified
The Fair Value Adjustment account can only have a credit balance or a zero balance.
Fair Value Adjustment
An accounting process of updating the reported value of an asset or liability to reflect its current market value.
- Learn the principle of fair value adjustment and its relevance to investments.
Verified Answer
ZK
Zybrea KnightMay 07, 2024
Final Answer :
False
Explanation :
The Fair Value Adjustment account can have either a debit or a credit balance, depending on whether the fair value of the asset or liability it is adjusting has increased or decreased.
Learning Objectives
- Learn the principle of fair value adjustment and its relevance to investments.
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