Which of the following types of securities is valued at amortized cost,subject to an impairment test?
A)Held-to-maturity securities.
B)Available-for-sale securities.
C)Cash equivalent securities.
D)Trading securities.

Question

Quizplus · Accepted Answer

Held-to-maturity securities are valued at amortized cost, which means they are held until maturity and the cost is depreciated over time. They are subject to an impairment test to determine if there has been a decline in value. Available-for-sale, cash equivalent, and trading securities are not valued at amortized cost and may be subject to different valuation methods.

Which of the Following Types of Securities Is Valued at Amortized