Chase_6615_ch17 - Andrew Chase Intermediate Accounting...

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Andrew Chase Intermediate Accounting Chapter 17 17-1 The difference between a debt security and an equity security is that a debt security represents a creditor relationship with another entity such as U.S. government securities, municipal securities, and corporate bonds. An equity security represents ownership interests such as common, preferred, or other capital stock and also includes rights to acquire or dispose of ownership interests at an agreed-upon or determinable price. 17-4 Held-to-maturity: Debt securities that the company has the positive intent and ability to hold to maturity. Trading: Debt securities bought and held primarily for sale in the near term to generate income on short-term price differences. Available-for-sale: Debt securities not classified as held-to-maturity or trading securities. 17-5 A debt security should be classified as held-to-maturity only if the entity has the positive intent and the ability to hold the security to maturity. 17-10 Unrealized holding gains and losses should be reported for investment securities as
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Chase_6615_ch17 - Andrew Chase Intermediate Accounting...

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