Investments in a private-purpose trust fund should generally be reported using fair market value.

Question

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Investments in a private-purpose trust fund should generally be reported using fair market value in accordance with Generally Accepted Accounting Principles (GAAP). This is because fair market value reflects the true value of the investments as of the date of the financial statements. It is important to accurately report the fair market value of the investments in order to provide users of the financial statements with meaningful information about the financial position and performance of the trust fund.

Investments in a Private-Purpose Trust Fund Should Generally Be Reported