At acquisition,debt securities are:
A)Recorded at their cost,plus total interest that will be paid over the life of the security.
B)Recorded at the amount of interest that will be paid over the life of the security.
C)Recorded at cost.
D)Not recorded,because no interest is due yet.
E)Recorded at the amount of dividend income to be received.

Question

Quizplus · Accepted Answer

Debt securities are recorded at cost at acquisition. The interest that will be paid over the life of the security is accounted for as interest income.

At Acquisition,debt Securities Are