When a Company Receives Interest Revenue on a Long-Term Investment

question 72

Multiple Choice

When a company receives interest revenue on a long-term investment in bonds,________.

• A) long-term assets decrease
• B) long-term assets increase
• C) equity increases
• D) current assets decrease

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Definitions:

Capitalist Income

Income generated from the ownership of capital assets, such as profits from business investments, interest on loans, or dividends from stocks.

Corporate Profits

The earnings of a corporation after all expenses have been deducted from revenues.

Labor Unions

Organizations formed by workers from related fields that work for the betterment of their members' employment conditions.

Proprietors' Income

Earnings received by owners of unincorporated businesses from their business activities.