You are the CPA engaged to audit the records of Quigley Company. You find that your client has a portfolio of marketable equity securities that has a total market value of \(\$ 300,000\) less than the total cost of the portfolio. You ask the vice president for finance if the client expects to sell these securities in the coming year. He answers that he doesn't know. The securities will be sold if additional cash is needed to finance operations. When you ask for a cash forecast, you are told that a forecast has been prepared that covers the next year. It indicates no need to sell the marketable securities.

Write a brief statement in which you explain how you would classify the client's portfolio of marketable securities in the balance sheet. Does it really make any difference whether the securities are classified as trading securities or available-for-sale securities? Explain.