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6. Which type of debt security is always categorized as a current asset? A) available for sale debt investments B) trading debt investments C) held-to-maturity
6. Which type of debt security is always categorized as a current asset? A) available for sale debt investments B) trading debt investments C) held-to-maturity debt investments D) Each of these choices can be categorized as long-term if the investor intends to hold the investment for longer than one year. are equity securities in which the investor owns between 2005 and 50 of the investee's voting stock. A) Held-to-maturity investments B) Significant influence investments C) Controlling interest investments D) Available for sale investments 8. Amex Corporation invests excess cash to purchase $25,000 in corporate bonds on March 30, 2018. In addition to the $25,000, Amex also paid a brokerage fee of $1,000. Amex intends to hold the bonds until maturity and has the ability to do so. When the bonds mature on March 30, 2020, Amex plans to use the cash for its business expansion. Which of the following is included in the journal entry on March 30, 2018? A) a debit to Hold-to-Maturity Dobt Investments for $25,000 B) a debit to Trading-Debt Investments for $25,000 C) a debit to Hold-to-Maturity Debt Investments for $26,000 D) a debit to Trading-Debt Investments for $26,000
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