GAAP requires trading and available-for-sale investments to be reported at their

A) fair value
B) historical cost
C) market value
D) net realizable value

Fair Value

The estimated market value of an asset or liability, based on current conditions and mutually agreed upon by both buyer and seller.

Trading Investments

Financial assets that a company intends to buy and sell within a short time frame, typically to capitalize on short-term market movements.

Historical Cost

The original monetary value of an asset or investment at the time of its acquisition or payment, not adjusted for inflation or market changes.