Which of the following is a major difference when accounting for long-term debt
ID: 2349941 • Letter: W
Question
Which of the following is a major difference when accounting for long-term debt investments versus short-term debt investments?A) Interest revenue is not recognized for long-term investments.
B) For short-term investments, bond premium or discount is not amortized to interest revenue.
C) At the end of the year, any unrealized gain or loss on long-term debt investments must be recognized in the stockholders' equity section of the balance sheet.
D) When selling long-term investments, no gain or loss is recognized.
Explanation / Answer
B) For short-term investments, bond premium or discount is not amortized to interest revenue.