Trading debt securities are reported as long-term assets.

Trading Debt Securities

Refers to the buying and selling of debt securities, such as bonds, in the financial market for short-term profit.

Long-term Assets

Assets that are expected to provide economic benefits to a company for a period longer than one year, such as real estate or equipment.

Ascertain the differentiating factors and explanations for trading, available-for-sale, and held-to-maturity securities.

Verified Answer

Final Answer :

False

Explanation :

Trading debt securities are reported as current assets because they are intended to be sold in the short term to generate income.

Learning Objectives

Ascertain the differentiating factors and explanations for trading, available-for-sale, and held-to-maturity securities.