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

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

b. Illustrate what factors should an analyst consider when evaluating whether investments in marketable equity securities are property classified as current or non-current? Explain how do these factors affect the accounting treatment for unrealized losses?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M9349904

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