Firms must classify their investments in securities into one of three categories: held-to-maturity,trading,and available-for-sale.

Name: Firms must classify their investments in securities into one of three categories: held-to-maturity,trading,and available-for-sale.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is true. The three categories for investment securities are held-to-maturity, trading, and available-for-sale. Each category has its own accounting treatment and affects the financial statements differently.

Firms Must Classify Their Investments in Securities into One of Three