Generally, under GAAP, market value is not used as the valuation basis for assets. Cost is used

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Generally, under GAAP, market value is not used as the valuation basis for assets. Cost is used instead. For marketable securities, however, market value is frequently used. What’s different about marketable securities that makes it reasonable for this class of asset to be reported at market value when most other assets are reported at cost?

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Financial Accounting Information For Decisions

ISBN: 978-0324672701

6th Edition

Authors: Robert w Ingram, Thomas L Albright

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