Jules & Associates purchased the bonds of Jay Bird Retailers during the year. Jules intends to hold onto these bonds to collect all principal and interest, but due to financial constraints, will most likely have to sell this investment on the open market within the next year. How should Jules classify this investment?

Question

Quizplus · Accepted Answer

Since Jules intends to sell the bonds within the next year due to financial constraints, the investment should be classified as available-for-sale, which is used for debt investments that are not classified as held-to-maturity or trading.

Jules & Associates Purchased the Bonds of Jay Bird Retailers