Debra Technologies Invested $50,000 to Buy $50,000 Face Value, 8

question 107

Multiple Choice

Debra Technologies invested $50,000 to buy $50,000 face value, 8%, five-year in municipal bonds on January 2, 2010. The bonds will mature on January 2, 2015. The bonds pay interest semiannually on January 2 and July 2 every year till maturity. When the company receives interest payments, how will the balance sheet line items be affected?

• A)Assets will decrease.
• B)Total asset will remain unchanged.
• C)Liabilities will decrease.
• D)Equity will increase.

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Definitions:

Volcanic Origin

Refers to landscapes, geological features, or materials that have formed as a result of volcanic activity, including eruptions, lava flows, and ash deposits.

Seafloor

The bottom of the ocean, covering a vast area and including features like plains, mountains, and trenches.

Continental Shelves

The underwater landmasses that extend around the continents, typically extending from the shore to a drop-off point known as the shelf break.

Abyssal Plains

Large, flat areas of the ocean floor that are among the deepest, most remote parts of the Earth's surface.