Investments in equity and debt securities should be carried at

Question

Quizplus · Accepted Answer

Equity and debt securities should be carried at fair market value, which is the current market price of the security. This ensures that the financial statements reflect the accurate value of the investments, which is important for decision-making purposes. The historical cost (A) may not reflect the current value of the investment, while the lower of cost or market (B) may result in understating the value of the investment. Therefore, C is the best choice.

Investments in Equity and Debt Securities Should Be Carried at