The Accrual of Interest on Short-Term Marketable Securities Results In

question 37

Multiple Choice

The accrual of interest on short-term marketable securities results in:

• A)an increase in current assets and a decrease in net income.
• B)an increase in current assets and an increase in net income.
• C)an increase in noncurrent assets and an increase in liabilities.
• D)an increase in current liabilities and an increase in net income.

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Definitions:

Shareholders

Shareholders are individuals or entities that own one or more shares of stock in a corporation, giving them ownership interests in the company.

Resident Aliens

Individuals who are not citizens of the United States but meet certain residency or physical presence tests and are subject to U.S. taxes on global income.

Electing

The act of choosing a specific tax treatment or option as permitted under tax laws.

Parent-subsidiary Corporations

A relationship between two companies where one (the parent) controls the other (the subsidiary).