At the time of acquisition of a debt investment
A) no journal entry is required.
B) the historical cost principle applies.
C) the Stock Investments account is debited when bonds are purchased.
D) the investment account is credited for its cost plus brokerage fees.

Question

Quizplus · Accepted Answer

The historical cost principle requires that debt investments be recorded at their cost, which includes the purchase price plus any brokerage fees.

At the Time of Acquisition of a Debt Investment