When a Company Invests in a Bond Which Has a Maturity

question 98

Multiple Choice

When a company invests in a bond which has a maturity greater than one year and pays cash:

• A)equity remains unchanged.
• B)current asset increases.
• C)liabilities increase.
• D)total assets increases.

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Definitions:

Economic Domination

A situation where a particular country, corporation, or individual exerts a significant level of control over economic resources and markets.

Imperialism

Is the economic domination of one country by another.

One Country

A principle often mentioned in discussions about the sovereignty and political structure, especially in contexts where there's a focus on maintaining national unity in areas with complex histories.

International Trade

The exchange of goods and services between countries, which plays an essential role in the global economy.