Question
When are companies required to amortize away the premium on a bond receivable? Companies never amortize away premiums. Only discounts need to be amortized. When
When are companies required to amortize away the premium on a bond receivable?
Companies never amortize away premiums. Only discounts need to be amortized. | ||
When the company has classified the bond receivable as a held-to-maturity security. | ||
Any time the company reports a balance in the premium account. | ||
When the company has classified the bond receivable as a trading security. |
Under U.S. GAAP, what value should companies report on the balance sheet for their available-for-sale securities portfolio?
Net amortized value. | ||
Historical cost. | ||
Carrying value. | ||
Market value. |
Which of the following transactions is NOT typically made for an investment classified as an equity security?
The change in market value. | ||
The report of a net profit. | ||
The initial purchase. | ||
The receipt of a dividend check. |
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