During 2010, the Market Price of Trading Securities Declined

question 2

Multiple Choice

During 2010, the market price of trading securities declined. Which one of the following correctly reflects the effects on the financial statements as a result?

• A) Current ratio and earnings per share decrease.
• B) Current ratio and earnings per share increase.
• C) Current ratio is unchanged and earnings per share increases.
• D) Current ratio increases and earnings per share are unchanged.

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Definitions:

High-Status Groups

High-status groups refer to social groups that are considered superior within a society due to certain attributes like wealth, power, or prestige.

Democratic Politics

A political system in which power is practiced directly by the people or through elected representatives, characterized by free and fair elections, rule of law, and protection of rights.

Market Economy

An economy in which the production and distribution of goods and services are determined by supply and demand, rather than state intervention.

Communist Party

A political organization advocating for the principles of communism, where property and resources are collectively owned.