Marketable securities are listed at what value?

Marketable securities are listed at what value?

• A. Current market value.
• B. Amortized cost.
• C. Net realizable value.
• D. Original cost.

Answer: (D)

Marketable securities are shown on the balance sheet at the original cost because, in the basic accounting approach, assets are recorded at the price paid when acquired (historical cost). This reflects the initial recognition: you record the purchase price (plus any buying costs) as the asset value. Only in later classifications—such as specific fair-value categories (like trading or available-for-sale) or for impairment—would the value be adjusted beyond the original cost. The other options correspond to different measurement rules that apply only under those specific circumstances, not the default presentation in a simple context.

Marketable securities are shown on the balance sheet at the original cost because, in the basic accounting approach, assets are recorded at the price paid when acquired (historical cost). This reflects the initial recognition: you record the purchase price (plus any buying costs) as the asset value. Only in later classifications—such as specific fair-value categories (like trading or available-for-sale) or for impairment—would the value be adjusted beyond the original cost. The other options correspond to different measurement rules that apply only under those specific circumstances, not the default presentation in a simple context.