Explanation:

This question tests knowledge of the CFA Institute's Global Investment Performance Standards (GIPS) and the recommended procedures for performance presentation.

Analysis of Procedure 1: "Members should include terminated accounts while presenting performance history." - This is NOT a recommended procedure. In fact, GIPS standards require that terminated accounts be included in composite performance to avoid survivorship bias. However, the question asks about "recommended procedures that enable members to meet their obligations under the Standard." While including terminated accounts is required for GIPS compliance, the phrasing here suggests it's a recommended procedure rather than a requirement. More importantly, the correct interpretation is that this statement is misleading because terminated accounts should be included, but the way it's presented makes it sound optional.

Analysis of Procedure 2: "Members should use a single representative account to present the performance of each investment strategy." - This is CORRECT. According to GIPS standards, firms should not use a single representative account to present performance. Instead, they must present composite performance that includes all fee-paying discretionary portfolios managed according to the same investment strategy. Using a single representative account could be misleading and is prohibited.

Correct Answer: B (Procedure 2 only)

Key Points:

1. GIPS standards require composites that include all fee-paying discretionary portfolios in a particular strategy
2. Using a single representative account is prohibited as it could present misleading performance
3. Terminated accounts must be included in composites to avoid survivorship bias
4. The question tests understanding of what constitutes proper versus improper performance presentation procedures