When the Cost Model Is Applied to an Investment in Debt

question 85

Multiple Choice

When the cost model is applied to an investment in debt securities, such as bonds, it is referred to as the

• A) equity method.
• B) fair value through net income model.
• C) fair value through other comprehensive income model.
• D) amortized cost model.

---

Definitions:

Statistical Procedures

Mathematical techniques that are used to collect, analyze, interpret, and present data.

Scientific Investigation

A systematic process that involves the use of scientific methods to collect data and generate knowledge or validate theories.

Analyse

To examine or review something in detail in order to understand it better or discover more about it.

Conclusions

Statements or judgments reached after considering the relevant facts and evidence.