Dynamic Software,Inc

question 180

Multiple Choice

Dynamic Software,Inc.invests excess cash of $100,000 in corporate bonds on March 30,2019.The bonds mature 20 years from the date of purchase.Dynamic plans to hold the bonds until maturity and has the ability to do so.How does the March 30,2019 transaction affect the accounting equation?

• A) liabilities will increase
• B) equity will decrease
• C) long-term assets will decrease
• D) total assets will remain unchanged

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