Asked by Sandy Babbie on Jul 08, 2024
Verified
Bonds are required by GAAP to be reported on the balance sheet at market value.
GAAP
Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction.
Market Value
The current price at which an asset or service can be bought or sold in a fair and open market.
- Comprehend the presentation and reporting requirements for bonds and other forms of liabilities on the balance sheet under GAAP.
Verified Answer
KC
Kaylin CashmanJul 11, 2024
Final Answer :
False
Explanation :
Bonds are required by GAAP to be reported on the balance sheet at their book value, not market value. Only certain types of investments, such as trading securities, are reported on the balance sheet at market value.
Learning Objectives
- Comprehend the presentation and reporting requirements for bonds and other forms of liabilities on the balance sheet under GAAP.