The Fair-Value Valuation Allowance account is a companion account to the Short-Term Investments or Long-Term Investments account.

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The Fair-Value Valuation Allowance account is a companion account to the Short-Term Investments or Long-Term Investments account. This allowance account is used to adjust the value of the investments to their fair market value. This adjustment is made periodically, which can result in either a loss or a gain, depending on the market conditions. Thus, it is considered as a companion account to the Investments account.

The Fair-Value Valuation Allowance Account Is a Companion Account to the Short-Term