When the market value of a company’s portfolio of available-for-sale securities is lower than its cost,the difference should be: a. accounted for as a valuation allowance deducted from the asset to which it relates b. accounted for as an addition in the shareholders’ equity section of the balance sheet c. accounted for as a liability d. disclosed and described in a note to the financial statements but not accounted for.
When the market value of a company’s portfolio of available-for-sale securities is lower than its cost,the difference should be:
a. accounted for as a valuation allowance deducted from the asset to which it relates b. accounted for as an addition in the shareholders’ equity section of the
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