1) Under the direct method of preparing a statement of cash flows, the gain on the sale of land is not adjusted or reported as part of cash flows from operating activities.

True

False

2) In order to maintain a record of the original cost of a trading security, the fair value adjustments are debited or credited to the account Valuation Allowance for Trading Investments.

True

False

3) A disadvantage of fair value use is that the comparability between companies may be impacted by different fair value measurements.

True

False