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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Refers to the level of readiness or eagerness a person has to engage in a particular behavior or action.

Outcome

The result or effect of an action, situation, or event; the consequence or end-result.

Expected Value Theory

A mathematical concept that calculates the average outcome when the future includes scenarios that may or may not happen, widely used in decision-making processes.

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A form of gambling that involves the drawing of numbers for a prize.