Asked by Autumn Gilbert on Jun 21, 2024
Verified
Held-to-maturity securities
A) are reported at fair value
B) include stocks as well as bonds
C) may be reported as current or noncurrent assets
D) all of these
Held-to-Maturity Securities
Debt securities that a firm has the positive intent and ability to hold until maturity.
- Develop an understanding of investment classifications: trading, available-for-sale, and held-to-maturity.
Verified Answer
JN
James NewtonJun 26, 2024
Final Answer :
C
Explanation :
Held-to-maturity securities are reported at amortized cost, not fair value (A is incorrect). These securities are usually bonds, not stocks (B is incorrect). They can be reported as either current or noncurrent assets, depending on their maturity date (C is correct).
Learning Objectives
- Develop an understanding of investment classifications: trading, available-for-sale, and held-to-maturity.