Which of the following is the major difference between the accounting for equity securities and debt securities?

Question

Quizplus · Accepted Answer

The major difference between the accounting for equity securities and debt securities is that the revenue from debt securities is interest, while revenue from equity securities is dividends. Debt securities are generally classified as either held-to-maturity or trading investments, while equity securities are classified as available-for-sale, trading, or held-to-maturity, depending on the company's intent for holding the securities. The classifications have nothing to do with liabilities or assets, and not all debt securities have a maturity date, as some may be perpetual or have no fixed maturity.

Which of the Following Is the Major Difference Between the Accounting