The Valuation Principle of "Fair Value Accounting" Applied to Investments

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

A) Affects the current period income statement,but not the balance sheet.
B) Enhances usefulness of the balance sheet in evaluating the financial position of a business.
C) Applies to marketable securities and inventories.
D) Requires a corporation to adjust its capital stock account to reflect current market value of its outstanding capital stock.

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