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  3. true or false   _____the fair value adjustment a

True Or False   _____The Fair Value Adjustment account has a normal credit balance. _____Companies report trading securities at...

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Accounting

True Or False  

_____The Fair Value Adjustment account has a normal creditbalance.

_____Companies report trading securities at fair value, withunrealized holding gains and losses reported in net income.

_____Equity security holdings between20 and 50 percent indicates that the investor has a controllinginterest over the investee.

_____A debt security acquired as aninvestment cannot be classified as a trading security.

_____One requirement related to fairvalue disclosure is that both the cost and the fair value of allinstruments be reported in the notes to the financialstatements.

_____Pretax financial income is theamount used to compute income taxes payable.

_____A deferred tax liabilityrepresents the increase in taxes payable in future years as aresult of taxable temporary differences existing at the end of thecurrent year.

_____A company should add a decreasein a deferred tax liability to income taxes payable in computingincome tax expense.

_____Examples of taxable temporarydifferences are subscriptions received in advance and advancerental receipts.

_____Permanent differences do not giverise to future taxable or deductible amount.

Answer & Explanation Solved by verified expert
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The classification of statements as True of False is given below 1 FALSE Fair value adjustment account had a debit balance normally 2 TRUE The statement is correct 3    See Answer
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