Which of the Following Statements Regarding Debt Securities Is Incorrect

question 61

Multiple Choice

Which of the following statements regarding debt securities is incorrect?

• A) Debt securities include Held-to-Maturity Debt Investments, Trading Debt Investments, and Available-for-Sale Debt Investments.
• B) When recording the receipt of interest revenue on Trading Debt Investments, Interest Revenue is credited.
• C) If a Held-to-Maturity Debt Investment is purchased at a discount or premium, the discount/premium must be amortized when the interest revenue is earned.
• D) All investments in debt securities are categorized as long-term assets.

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Definitions:

Child Care Benefits

Employer-provided or subsidized access to child care services, intended to support employees who are parents or guardians by easing the burden of child care.

Family and Medical Leave Act

A U.S. federal law that provides employees with unpaid, job-protected leave for certain family and medical reasons.

529 Savings Plan

A tax-advantaged savings plan designed to encourage saving for future education costs, operated by states and educational institutions.