Requires a corporation to adjust its capital stock account

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Problem

The valuation principle of "fair value accounting" applied to investments classified as available for sale securities:

Affects the current period income statement, but not the balance sheet.

Enhances usefulness of the balance sheet in evaluating the financial position of a business.

Applies to marketable securities and inventories.

Requires a corporation to adjust its capital stock account to reflect current market value of its outstanding capital stock.

Reference no: EM131793851

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