Investments in bonds intended to be sold before they reach maturity should be reported under the fair value method.

Question

Quizplus · Accepted Answer

According to Generally Accepted Accounting Principles (GAAP), investments in bonds intended to be sold before they reach maturity should be reported under the fair value method. This means that the bonds should be reported at their fair market value on the balance sheet.

Investments in Bonds Intended to Be Sold Before They Reach