How should marketable securities be valued when reported in a Permanent Fund's balance sheet?
A)at the cost to the donor of the investments
B)at the fair value of the investments on the date received by the government
C)at the fair value of the investments as of the balance sheet date
D)at the amount paid to acquire the securities

Question

Quizplus · Accepted Answer

Marketable securities should be valued at their fair value as of the balance sheet date, in accordance with Generally Accepted Accounting Principles (GAAP). This provides a more accurate representation of the current value of the investments and their impact on the Permanent Fund's financial position. Valuing them at their cost or purchase price may not reflect their current market value and could lead to misinterpretation of the fund's financial status.

How Should Marketable Securities Be Valued When Reported in a Permanent