The purpose of the mark-to-market adjustment for securities classified as "available-for-sale" is:
A) To adjust the valuation of a company's investment to current market value.
B) To recognize the proper amount of gain or loss on fluctuations in the market value of these securities in the current period income statement.
C) To adjust a corporation's capital stock account to reflect the current market value of the outstanding capital stock.
D) Both a and b are correct.

Question

Quizplus · Accepted Answer

The Answer of The purpose of the mark-to-market adjustment for securities classified as "available-for-sale" is:
A) To adjust the valuation of a company's investment to current market value.
B) To recognize the proper amount of gain or loss on fluctuations in the market value of these securities in the current period income statement.
C) To adjust a corporation's capital stock account to reflect the current market value of the outstanding capital stock.
D) Both a and b are correct.

The Purpose of the Mark-To-Market Adjustment for Securities Classified as "Available-For-Sale