Definition

Debit investments

Debit investments are investments in government and corporation bonds. In accounting for debt investments, companies make entries to record (1) the acquisition, (2) the interest revenue, and (3) the sale.

Companies record investments in debt securities when they purchase bonds, receive or accrue interest, and sell the bonds. They report gains or losses on the sale of bonds in the “Other revenues and gains” or “other expenses and losses” sections of the income statement.

Share it:  Cite

More from this Section

  • Cash equivalents
    Cash equivalents are short-term, highly liquid investments that can be converted into ...
  • Trademark /Trade names
    A trademark or trade name is a word, phrase, jingle, or symbol that identifies a particular ...
  • The Benefit of Budgeting
    The primary benefit of budgeting are: It requires all levels of management to a plan ...
  • Budget committee
    Budget committee is a group responsible for coordinating the preparation of the budget. Budget ...
  • Capital leases
    Capital lease is a contractual arrangement that transfers substantially all the benefits ...