Maurice Corporation Invested $100,000 to Acquire 20,000 Shares of Delta

question 16

Multiple Choice

Maurice Corporation invested $100,000 to acquire 20,000 shares of Delta Technologies on March 1, 2015. Delta pays a cash dividend of $0.25 per share on July 2, 2015. The investment is classified as an available-for-sale investment. Based on the information provided, which of the following is true of the balance sheet as of July 2, 2015?

• A)Total assets in the balance sheet will remain unchanged.
• B)Current assets in the balance sheet will remain unchanged.
• C)Equity in the balance sheet will increase.
• D)Total liabilities in the balance sheet will increase.

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Definitions:

Maximize Profits

The process of increasing the difference between total revenues and total costs to achieve the highest possible earnings.

Output Level

The quantity of goods or services produced by a firm or industry within a specific time frame.

Marginal Revenue

The additional income received from selling one more unit of a good or service, crucial for decision-making in output levels.

Marginal Cost

The price of creating one more unit of a product or service.