Held-to-maturity securities
A) are reported at fair value
B) include stocks as well as bonds
C) may be reported as current or noncurrent assets
D) all of these

Question

Quizplus · Accepted Answer

Held-to-maturity securities are debt securities that a company has the ability and intent to hold until maturity. These securities are reported at amortized cost on the balance sheet, and they may be reported as current or noncurrent assets based on their maturity date. Held-to-maturity securities do not include stocks, as they are specifically limited to debt securities. They are not reported at fair value, as they are held for the purpose of generating steady cash flow, rather than for speculation or trading purposes.

Held-To-Maturity Securities