Marketable securities are temporary investments of excess cash and are carried at the lower of cost or market.

Question

Quizplus · Accepted Answer

Marketable securities are indeed temporary investments of excess cash and are reported on the balance sheet at the lower of cost or market value. This is done to accurately reflect their current market value and potential for loss, and to prevent overvaluing these assets on the balance sheet.

Marketable Securities Are Temporary Investments of Excess Cash and Are