GAAP requires trading and available-for-sale investments to be reported
A) at their fair value
B) at their historical cost
C) at their market value
D) at their net realizable value

Question

Quizplus · Accepted Answer

GAAP requires trading and available-for-sale investments to be reported at their fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Historical cost, market value, and net realizable value are not the appropriate measures for reporting these types of investments under GAAP.

GAAP Requires Trading and Available-For-Sale Investments to Be Reported