QUESTION 3 Marketable securities are valued on the balance sheet at fair market value at cost or fair market value depending on whether they are classified as "held to maturity" or "available for sale" at historical cost at fair market value with the difference between cost and fair value reported as a gain or loss QUESTION 4 Which of the following is not an acceptable inventory costing method under U.S. GAAP? Next-In, First-Out (NIFO) First-In, First-Out (FIFO) Last-In, First-Out (LIFO) Specific identification QUESTION 5 A deferred tax asset is recorded when expenses are recorded on the income statement but not allowed to be deducted for tax purposes until a later accounting period. True False QUESTION 6 Warranty obligations are estimated in order to recognize the obligation at the balance sheet date and to charge the expense to the period of the sale. True False