QUESTION 3 OF 25
What is the difference between Held-to-Maturity Securities and Available-for-Sale Securities?
Held-to-Maturity and Available-for-Sale securities are two common types of business investments that have different accounting treatment. A treasury analyst should be able to define each type of investment and point out the difference in accounting treatment.
"A Held-to-Maturity security is one in which the organization has the intent and ability to hold until the security reaches maturity. These securities are reported at amortized cost on the balance sheet. Available-for-Sale securities, such as stocks and bonds, are reported at fair value on the balance sheet."
