Debt Securities: Classification and Long-Term Investments

Which Debt Securities are Not Classified as Long-Term?

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Question

Which of the following investments in debt securities would not normally be classified as long-term?

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Explanations

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A. B. C. D. E.

B

Only held-to-maturity and available-for-sale securities are potential non-current investments. Trading securities are always considered to be current in nature, whereas held-to-maturity and available-for- sale securities may be classified as long-term should their maturity, or management's intent dictate.

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