Final answer:
The balance sheet account usually reported at fair value is 'b. Marketable Securities', as these assets are easily convertible into cash and their value reflects current market conditions, unlike other assets which are based on historical cost or lower of cost or market values.
Step-by-step explanation:
The question you've asked is centered around balance sheet accounts and which of these is typically reported at fair value. A balance sheet is an essential financial statement in accounting that represents a snapshot of a company's financial condition at a single point in time, listing its assets, liabilities, and net worth. Among the options provided, the correct answer is 'b. Marketable Securities.'
Marketable securities are financial instruments like stocks and bonds that are easily convertible to cash and are usually held by a company for short-term investing purposes. Unlike other assets such as land or inventory, which might be valued at historical cost or lower of cost or market, marketable securities are often reported at fair value because of their liquidity and the need for reflecting the current market conditions in the financial statements. This means they are recorded on the balance sheet at their current market value, which is the price at which they could be sold in an open market as of the balance sheet date.
To clarify further, land is typically recorded at its purchase price and is not depreciated, while inventory is valued at the lower of cost or market, and accounts receivable are reported at the amount expected to be received, less any allowance for doubtful accounts. Therefore, option 'b' fits the criteria for being reported at fair value on the balance sheet.