Held-to-maturity securities are:
A)Always classified as long-term liabilities.
B)Part of equity.
C)Debt securities that a company intends and is able to hold to maturity.
D)Equity securities that a company intends and is able to hold to maturity.
E)Equity securities that have a maturity value greater than cost.

Question

Quizplus · Accepted Answer

Held-to-maturity securities are debt securities that a company intends and is able to hold to maturity. They are reported at amortized cost on the balance sheet and any unrealized gains or losses are ignored. They are not classified as long-term liabilities or part of equity, and they do not include equity securities. The maturity value is not relevant for held-to-maturity securities.

Held-To-Maturity Securities Are