All of the following statements regarding available-for-sale debt securities are true except

A) premiums and discounts are amortized
B) interest revenue may be debited at the time of acquisition
C) the securities will be valued using the lower of cost or market method
D) realized gain or loss is the difference between the amortized cost of the bonds and the proceeds from their sale

Available-For-Sale

A classification for financial assets indicating they are not primarily held for trading purposes or expected to be sold in the short-term, allowing for changes in value to be recorded in other comprehensive income.

Amortized Cost

The initial investment amount of a financial asset or liability adjusted for principal repayments and, if applicable, the cumulative effect of using the effective interest method.

Debt Securities

Financial instruments representing a loan made by the investor to the issuer which may include bonds, notes, and bills.