Uptown Church received a donation of marketable equity securities from a church member.In reviewing the financial press,it is determined that the securities had appreciated during the year.At what amount should Uptown report its marketable equity securities in the year-end balance sheet?

Question

Quizplus · Accepted Answer

According to the accounting principle of fair value, marketable equity securities should be reported at their market value at the balance sheet date. This ensures that the financial statements accurately reflect the current value of the securities and provides relevant and reliable information for decision-making. Option A and B are incorrect because they do not reflect the current market value of the securities, and option D is incorrect because the lower of the three values does not always provide relevant and reliable information.

Uptown Church Received a Donation of Marketable Equity Securities from a Church