Which of the following investment securities held by Zoogle Inc. may be classified as held-to-maturity securities in its balance sheet?

Question

Quizplus · Accepted Answer

Only long-term debenture bonds can be classified as held-to-maturity securities as they have a fixed maturity date and Zoogle Inc. has the positive intent and ability to hold them till maturity. Common stock and callable preferred stock do not have a fixed maturity date and their classification depends on the company's intent and ability to hold them to maturity, which is difficult to determine. Therefore, they are generally classified as available-for-sale or trading securities.

Which of the Following Investment Securities Held by Zoogle Inc