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 GAAP (Generally Accepted Accounting Principles), marketable equity securities should be reported at fair value, which is the market value of the securities at the balance sheet date. Therefore, Uptown should report the securities at their market value as of the end of the year in the balance sheet, regardless of the cost or date of receipt.

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