No matter how much these investments are actually worth,when the balance sheet is prepared these investments will always be reported at original cost,plus or minus any discount or premium amortization.
A)held-to-maturity securities
B)discretionary securities
C)trading securities
D)available-for-sale securities

Question

Quizplus · Accepted Answer

Held-to-maturity securities are investments in debt securities that a company intends to hold until they reach maturity. The accounting treatment for these securities requires that they be reported on the balance sheet at their amortized cost, which is the original cost adjusted for any discounts or premiums, and any amortization of those discounts or premiums. This is in contrast to trading securities and available-for-sale securities, which are reported on the balance sheet at fair value. Discretionary securities is not a recognized accounting term.

No Matter How Much These Investments Are Actually Worth,when the Balance