Final answer:
Equity securities with a readily determinable market value and all debt securities of a not-for-profit organization are reported at fair value.
Step-by-step explanation:
Investments in equity securities that have a readily determinable market value and all debt securities of a not-for-profit organization are reported at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Not-for-profit organizations, similarly to for-profit entities, must consider factors related to the cost of financial capital, returns to society, and effective rate of return when making investment decisions. Moreover, the process of accessing financial capital may involve choices between borrowing from a bank, issuing bonds, or issuing stock, depending on the goals and control preferences of the organization.