When an Investment in a Held-To-Maturity Security Is Transferred to an Available-For-Sale

question 43

Multiple Choice

When an investment in a held-to-maturity security is transferred to an available-for-sale debt security, the carrying value assigned to the available-for-sale debt security should be

• A) Its original cost
• B) Its fair value at the date of the transfer
• C) The higher of its original cost or its fair value at the date of the transfer.
• D) The lower of its original cost or its fair value at the date of the transfer.

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Definitions:

Change Hindrances

Obstacles that impede progress and make it difficult for the organization to adapt to different situations.

Ineffective Communication

A process where the transfer of information is unsuccessful or misinterpreted by the receiver, leading to misunderstanding and obstacles in achieving objectives.

Unclear Processes

Refers to procedures or operations that lack definition, transparency, or are difficult to understand.

Ceremony

A formal event or ritual conducted on special occasions, like weddings, graduations, or religious events.