Which of the following are true concerning nonoperating assets that can be converted into cash on short notice and at low cost?
I.They are classified as excess cash and marketable securities.
II.Short-term losses can be deducted directly from their value,bypassing the income statement.
III.Under International Financial Reporting Standards (IFRS),they are to be reported at fair market value on the balance sheet.
IV.Under U.S.Generally Accepted Accounting Principles (GAAP),they are to be reported at fair market value on the balance sheet.
A)I and IV only.
B)I,II,and III only.
C)I,III,and IV only.
D)III and IV only.

Question

Quizplus · Accepted Answer

Nonoperating assets that can be converted into cash on short notice and at low cost are classified as excess cash and marketable securities. Short-term losses can be deducted directly from their value, bypassing the income statement. Under both International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (GAAP), they are to be reported at fair market value on the balance sheet. Thus, statements I, III, and IV are true.

Which of the Following Are True Concerning Nonoperating Assets That