Which of the following statements regarding debt securities is incorrect? All invento Quriti

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Which of the following statements regarding debt securities is incorrect?
All investments in debt securities are categorized as long-term assets.
Debt securities include Held-to-Maturity Debt Investments, Trading Debt Investments, and Available-for-Sale Debt Investments.
When recording the receipt of interest revenue on Trading Debt Investments, Interest Revenue is credited.
If a Held-to-Maturity Debt Investment is purchased at a discount or premium, the discount/premium must be amortized when the interest revenue is earned.
Transcribed Image Text:Which of the following statements regarding debt securities is incorrect? All investments in debt securities are categorized as long-term assets. Debt securities include Held-to-Maturity Debt Investments, Trading Debt Investments, and Available-for-Sale Debt Investments. When recording the receipt of interest revenue on Trading Debt Investments, Interest Revenue is credited. If a Held-to-Maturity Debt Investment is purchased at a discount or premium, the discount/premium must be amortized when the interest revenue is earned.
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