If a debt instrument is sold before maturity, then a gain is recorded if the cash received is less than the carrying amount of the instrument.

Name: If a debt instrument is sold before maturity, then a gain is recorded if the cash received is less than the carrying amount of the instrument.
Brand: Quizplus
Rating: 4.8 (60 reviews)

Question

Quizplus · Accepted Answer

A gain is recorded if the cash received is more than the carrying amount of the instrument. If the cash received is less, a loss is recorded.

If a Debt Instrument Is Sold Before Maturity, Then a Gain