Which of the following is not a true statement about the accounting for debt investments?
A) At acquisition the historical cost principle applies.
B) The cost includes any brokerage fees.
C) Debt investments include investments in government and corporation bonds.
D) The cost includes any accrued interest.

Question

Quizplus · Accepted Answer

The cost of acquiring debt investments includes the price paid for the investment and any associated brokerage fees, but it does not include any accrued interest. Accrued interest is considered separately and is usually expensed or recognized as interest income or expense over the period it accrues, not capitalized into the cost of the investment.

Which of the Following Is Not a True Statement About