Which Type of Debt Security Is Always Categorized as a Current

question 5

Multiple Choice

Which type of debt security is always categorized as a current asset?

• A) available-for-sale debt investments
• B) trading debt investments
• C) held-to-maturity debt investments
• D) Each of these choices can be categorized as long-term if the investor intends to hold the investment for longer than one year.

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Definitions:

Debit Entry

An accounting entry that results in either an increase in assets or expenses, or a decrease in liabilities or equity, on a company's balance sheet.

Account

A record in financial accounting that tracks the financial transactions related to a specific asset, liability, equity, revenue, or expense.

Credits

Accounting entries that increase liabilities or equity or decrease assets or expenses.

Account Balances

The amounts in financial accounts, representing the net value at a particular point in time after accounting for all debits and credits.