The fair value principle is applied for
A) all assets.
B) current assets.
C) buildings.
D) investment securities.

Question

Quizplus · Accepted Answer

The fair value principle is generally applied to investment securities, which are held for the purpose of generating profits. Current assets, such as cash and accounts receivable, are also often reported at fair value. Buildings are usually reported at historical cost less accumulated depreciation, unless their fair value has significantly increased since acquisition. Therefore, the best choice is option D, investment securities.

The Fair Value Principle Is Applied for