Maintain an investment portfolio

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An important element in accounting for investment securities concerns the distinction between its noncurrent and current classification.

Required:

a. Why do most companies maintain an investment portfolio consisting of both current and noncurrent securities?

b. What factors should an analyst consider when evaluating whether investments in marketable equity securities are properly classified as current or noncurrent? How do these factors affect the accounting treatment for unrealized losses

Reference no: EM133018159

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