Held-To-Maturity Investments in Bonds Are Initially Reported at ________ on the Purchase

question 64

Multiple Choice

Held-to-maturity investments in bonds are initially reported at ________ on the purchase date.On a subsequent balance sheet date,the bonds are reported at ________.

• A)cost;fair value.
• B)amortized cost;fair value.
• C)cost;amortized cost.
• D)cost;lower of cost or market.

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Definitions:

Privity Requirement

The legal doctrine stating that only parties involved in the creation of a contract have the standing to enforce or challenge it.

Securities Act

A 1933 United States law that regulates the sale of securities, primarily requiring the disclosure of important financial information through registration of securities.

Aiding and Abetting

The act of assisting or facilitating another person in the commission of a crime by providing advice, financial support, or physical assistance.

Securities Exchange Act

A U.S. law enacted in 1934 to govern the trading of securities, such as stocks and bonds, to protect investors and maintain fair and orderly markets.