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Debt securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses and are included as other comprehensive income and as a separate component of stockholders' equity are:________.1. never-sell debt securities.
2. held-to-maturity debt securities.
3. trading debt securities.
4. available-for-sale debt securities.

Respuesta :

Answer:

The correct option is 2,held-to-maturity debt securities

Explanation:

Option 1 is obviously wrong because never-sell debt securities is a class of debt securities that is non-existent.

Option 3 is also wrong because the gains or losses on trading debt securities are realized gains or losses accounted for directly in the profit or loss statement.

Also, the available-for-sale debt securities are expected to be treated in tha same manner as trading-debt securities

Lastly, the  minute difference between trade debt securities and available-for-sale securities is that it is guaranteed that the former would be disposed in the normal trading cycle while the latter is available for sale, might sold or kept for some time