Short-term investments are reported on the balance sheet at the lower of their original cost or year-end market value.

Name: Short-term investments are reported on the balance sheet at the lower of their original cost or year-end market value.
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Question

Quizplus · Accepted Answer

Short-term investments are reported on the balance sheet at their fair market value as of the balance sheet date, not at the lower of their original cost or year-end market value. This approach aligns with the accounting principle of fair value measurement.

Short-Term Investments Are Reported on the Balance Sheet at the Lower