Investments by private not-for-profit organizations in equity securities should be carried at

Question

Quizplus · Accepted Answer

Private not-for-profit organizations should carry their investments in equity securities at Fair Market Value, according to GAAP principles. This accounting method reflects the current value of the assets and provides a more accurate representation of the organization's financial position. Historical cost is not relevant for investments in equity securities since their value can fluctuate greatly over time, and Lower of cost or Market is only applicable to some types of assets, such as inventory.

Investments by Private Not-For-Profit Organizations in Equity Securities Should Be