Asked by Osayama Jackie on Jun 29, 2024

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Held-to-maturity securities

A) are reported at their fair market value on the balance sheet date
B) include both stocks and bonds
C) are primarily purchased to earn interest revenue
D) All of these choices

Held-To-Maturity Securities

Held-to-maturity securities are financial assets purchased with the intent and ability to hold them until a specified maturity date, typically including certain kinds of bonds.

Fair Market Value

An estimate of the market value of a property, assuming that both buyer and seller are knowledgeable, willing, and under no pressure to transact.

Interest Revenue

Income earned from lending money or depositing funds into interest-bearing accounts.

  • Elucidate the variances between trading securities, available-for-sale securities, and securities intended to be held until maturity.
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ZK
Zybrea KnightJul 01, 2024
Final Answer :
C
Explanation :
Held-to-maturity securities are debt securities that a company intends to hold until maturity and primarily purchased to earn interest revenue. They are reported at amortized cost on the balance sheet, not at their fair market value. They only include bonds, not stocks.