Management must have the intent and ability to hold a bond investment until maturity if it is to be classiﬁed as a held-to-maturity security.

Name: Management must have the intent and ability to hold a bond investment until maturity if it is to be classiﬁed as a held-to-maturity security.
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Question

Quizplus · Accepted Answer

This statement is true. According to accounting standards, a held-to-maturity security is defined as a debt security that an entity has the intent and ability to hold until it matures.

Management Must Have the Intent and Ability to Hold a Bond