CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

How would securities held for the purpose of retiring long-term bonds be reported on a classified balance sheet?
A. They would be reported as current assets.
B. They would be reported as long-term investments.
C. They would be reported as a contra account to bonds payable.
Explanation: The securities should be classified in a manner consistent with the related debt, i.e., current or long term.

User Contributed Comments 3

User Comment
shasha bond is long-term investment
EBIII who tell you this? Bonds can mature in the next 24 hours. Holding a bond does not necessarily mean that it is a long term investment.
cbb1 Description in question identifies it as long-term.
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