Asked by Henry Gardner on Jul 26, 2024
Verified
All of the following statements regarding held-to-maturity debt securities are true except
A) premiums and discounts must be amortized over the remaining life of the bonds
B) the debt securities should be valued at market value
C) the realized gain or loss is the difference between the original cost and the proceeds from their sale
D) interest revenue may be debited at the time of acquisition
Held-To-Maturity
A classification for investment securities which the investor has the intent and ability to hold until they mature.
Market Value
The current quoted price at which an asset or service can be bought or sold in a marketplace.
Debt Securities
Financial instruments representing money owed by the issuer to the holder, typically in the form of bonds, bills, or notes.
- Acquire knowledge on the classification and concept of investment securities such as available-for-sale, held-to-maturity, and trading.
Verified Answer
Learning Objectives
- Acquire knowledge on the classification and concept of investment securities such as available-for-sale, held-to-maturity, and trading.
Related questions
All of the Following Statements Regarding Available-For-Sale Debt Securities Are ...
Which Type of Investment in Securities Must Always Be Classified ...
When Selecting the Appropriate Accounting for Held-To-Maturity Securities, the Company ...
The Fair Value Method of Accounting for Investments Was Proposed ...
Held-To-Maturity Securities ...