Asked by Henry Gardner on Jul 26, 2024

verifed

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.
verifed

Verified Answer

KT
Khuat Thi Kim Anh - K13 FUG CTJul 31, 2024
Final Answer :
B
Explanation :
Held-to-maturity debt securities are reported at amortized cost on the balance sheet, not at market value.