Question:XYZ Company acquires common stock of the ABC Company for the purpose of developing a long-term relationship with ABC, which is a major supplier of the raw material used to manufacture XYZ's product. How would XYZ Company report these securities on its Balance Sheet? 

A At acquisition cost and classified as a current asset in the Marketable Securities account 
B At acquisition cost and classified as a noncurrent asset in the Investment in Securities account 
C At market value and classified as a current asset in the Marketable Securities account 
D At market value and classified as a noncurrent asset in the Investment in Securities account 

+ Answer
B 

+ Explanation
Answer not sure

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Md. Habib Ullah

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