Marketable debt and equity securities that a firm expects to hold as a short-term investment are reported on the balance sheet at
A)current market value.
B)historical cost.
C)amortized current market value.
D)amortized historical cost.

Question

Quizplus · Accepted Answer

Marketable debt and equity securities held as short-term investments are reported on the balance sheet at current market value, as per accounting standards. This reporting method reflects the fair value of the securities and allows for better measurement of the company's financial position. Historical cost (B) and amortized historical cost (D) are not appropriate for short-term investments, whereas amortized current market value (C) is not a standard reporting method for these investments.

Marketable Debt and Equity Securities That a Firm Expects to Hold