If an equity investment accounted for using fair value has decreased in value,the year-end adjustment requires a debit to Unrealized Loss on Fair-Value Adjustment.

Question

Quizplus · Accepted Answer

When an equity investment accounted for using fair value has decreased in value, the year-end adjustment requires a debit to Unrealized Loss on Fair-Value Adjustment. This is because the fair value of the investment has decreased, and therefore the investment is worth less than what it was initially valued at. This adjustment reflects the decrease in value and reduces the overall value of the investment on the balance sheet.

If an Equity Investment Accounted for Using Fair Value Has