If a security is not classified as held-to-maturity or trading,then it is classified as an available-for-sale security.

Question

Quizplus · Accepted Answer

This statement is true. The three classifications of debt securities under generally accepted accounting principles (GAAP) in the US are held-to-maturity, trading, and available-for-sale. If a security doesn't fit into the first two categories, it is classified as available-for-sale.

If a Security Is Not Classified as Held-To-Maturity or Trading,then