Asked by Diana Richardson on Jun 18, 2024
Verified
Investment in Bonds is reported on the balance sheet at lower of cost or market.
Investment in Bonds
The purchase of bonds with the aim to earn interest income over time and potentially benefit from appreciation in bond value.
Balance Sheet
A financial statement that provides a snapshot of a company's financial position by detailing its assets, liabilities, and equity at a specific point in time.
Lower of Cost
A principle that dictates inventory and other assets are recorded at the lesser of their historical cost or market value.
- Recognize the categories of investments on the balance sheet and their handling as per Generally Accepted Accounting Principles (GAAP).
Verified Answer
Learning Objectives
- Recognize the categories of investments on the balance sheet and their handling as per Generally Accepted Accounting Principles (GAAP).
Related questions
Investments That Do Not Normally Change in Value Are Disclosed ...
Investments in Stocks That Are Expected to Be Held for ...
All of the Following Statements About Short-Term Investments Are True ...
Short-Term Stock Investments Should Be Valued on the Balance Sheet ...
Brandy Corporation's Trading Portfolio at the End of the Year ...