Accounting for long-term investments in debt securities


Response to the following questions:

1. Where are unrealized gains and losses on trading securities reported?

2. Give at least two examples of assets classified as long-term investments.

3. What are the requirements for an equity security to be listed as a long-term investment?

4. Identify similarities and differences in accounting for long-term investments in debt securities that are held-to-maturity versus those available-for-sale.

5. What are the three possible classifications of long-term equity investments? Describe the criteria for each class and the method used to account for each.

 

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Accounting Basics: Accounting for long-term investments in debt securities
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