Held-for-collection securities are valued at

Question

Quizplus · Accepted Answer

Held-for-collection securities are debt securities that the company intends to hold until they mature or until it collects the cash flow from the underlying assets. These securities are typically held at amortized cost, which is the original cost of the security adjusted for any amortization of premiums or discounts. This means that the value of the securities on the balance sheet will reflect the cash flow that the company expects to receive from the security rather than its current market value. Therefore, choice B, amortized cost, is the best choice for valuing held-for-collection securities.

Held-For-Collection Securities Are Valued at