Which of the Following Is the Major Difference Between the Accounting

question 67

Multiple Choice

Which of the following is the major difference between the accounting for equity securities and debt securities?

• A)Debt securities are classified as liabilities,while equity securities are classified as assets.
• B)Debt securities are classified as trading investments,while equity securities are classified as held-to-maturity investments.
• C)Debt securities earn interest revenue,while equity securities earn dividend revenue.
• D)Debt securities of all types have a maturity date,while only a few equity securities have a maturity date.

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