Question

Which of the following investment securities held by Google Inc. may be classified as held-to-maturity securities in its balance sheet?



Which of the following investment securities held by Google Inc. may be classified as held-to-maturity securities in its balance sheet? 


  • All of these answer choices are correct. 

  • None of these answer choices are correct. 

  • Common stock 

  • Long-term debenture bonds 

  • Callable preferred stock

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Answer #1
Answer : Option d [ Long-term debenture bonds ]
Explanation :
Long term debentures bond comes with a maturity and if the management has an intention to hold such securities until the maturity, then this can be termed as held to maturity security.
On the other hand common stock has no maturity and here the preferred stocks are callable which means the company can call them back anytime before the maturity.
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