When short-term investments appear in the balance sheet at their current market values,it is an exception to the ________ principle.
A)Revenue recognition
B)Matching
C)Cost
D)Relevance

Question

Quizplus · Accepted Answer

The exception to the cost principle occurs when short-term investments appear at their current market values on the balance sheet. The cost principle typically dictates that assets are recorded and reported at their original purchase cost. However, for short-term investments, the more relevant current market values are used instead to provide a more accurate representation of the asset's value.

When Short-Term Investments Appear in the Balance Sheet at Their