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Financial Accounting

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Effect of Categorization of Bond Investment

FINACT-EQEVNK

Your company invested in a bond in 2015 and had the intention to hold it until its maturity date on January 1, 2025.

Your new accountant misclassified this investment as a long-term available-for-sale investment on the balance sheet at the end of 2015. Were your company's total assets overstated, understated, or correctly stated?