The Valuation Principle of "Mark-To-Market" Applied to Investments Classified as Available

question 66

Multiple Choice

The valuation principle of "mark-to-market" applied to investments classified as available for sale securities:

• A) Affects the current period income statement, but not the balance sheet.
• B) Enhances usefulness of the balance sheet in evaluating solvency of a business.
• C) Applies to marketable securities and inventories.
• D) Requires a corporation to adjust its capital stock account to reflect current market value of its outstanding capital stock.

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