The method of accounting for trading securities and available-for-sale securities in which the assets are valued at market value on the balance sheet is known as the

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The method of valuing trading securities and available-for-sale securities at market value on the balance sheet is known as the market method. This means that the securities are recorded at their fair value on the balance sheet, which is determined by the current market price of the securities. This is in contrast to the cost method, where securities are recorded at their historical cost. The market method is widely used for securities that are expected to be sold in the near future, as it provides a more accurate reflection of their current value.

The Method of Accounting for Trading Securities and Available-For-Sale Securities