When a company purchases debt securities,it records them at
A)cost,ignoring any commissions and fees
B)cost plus commissions and fees
C)cost less commissions and fees
D)the value expected at maturity

Question

Quizplus · Accepted Answer

When a company purchases debt securities, it records them at cost plus commissions and fees. This is because the commissions and fees are part of the cost of acquiring the securities.

When a Company Purchases Debt Securities,it Records Them at