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:

Turnover

The rate at which an employer gains and loses employees, or the total sales divided by the average inventory in a given period.

Operating Assets

Assets that are used for the day-to-day operations of a business such as cash, inventory, and machinery.

Residual Income

The amount of income that an individual or company has after subtracting all costs and expenses, including the cost of capital.

Net Operating Income

The income generated from a company's everyday business operations, indicating the profitability from core operations before interest and taxes.