Accounting for long-term investments in held-to-maturity securities requires companies to record interest revenue as it is earned.

Question

Quizplus · Accepted Answer

Accounting for held-to-maturity securities requires companies to record interest revenue as it is earned, which is typically done using the effective interest method. The interest is recorded as a part of the investment's carrying value and is realized when the security matures or is sold.

Accounting for Long-Term Investments in Held-To-Maturity Securities Requires Companies to Record