Debt securities are recorded at cost when purchased.

Name: Debt securities are recorded at cost when purchased.
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Debt securities are recorded at cost when purchased, according to accounting rules. The cost includes the initial purchase price plus any additional fees or charges paid to acquire the security. The cost is then adjusted over time for any amortization of premiums or discounts, as well as any impairment losses or realized gains or losses upon sale or maturity of the security.

Debt Securities Are Recorded at Cost When Purchased