All investments except for money market investments and participating interest earning investments contracts with a remaining maturity date of one year or less should be reported at:

Question

Quizplus · Accepted Answer

According to generally accepted accounting principles (GAAP), investments that have a remaining maturity date of more than one year should be reported at fair value on the balance sheet. Fair value represents the estimated value of an asset in the current market, and it provides a more accurate representation of an investment's worth than book value or other methods. Money market investments and participating interest earning investments with a remaining maturity date of one year or less can be reported at book value, which is the original cost of the investment. Therefore, the best choice for reporting investments is fair value (B).

All Investments Except for Money Market Investments and Participating Interest