When a Company Receives Interest Revenue on a Long-Term Investment

question 72

Multiple Choice

When a company receives interest revenue on a long-term investment in bonds,________.

• A) long-term assets decrease
• B) long-term assets increase
• C) equity increases
• D) current assets decrease

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Definitions:

Debt to Equity

A financial ratio indicating the relative proportions of shareholders' equity and debt used to finance a company's assets.

Ownership of Partnership

Ownership of a partnership refers to the proportionate share of rights, interests, and responsibilities in a partnership business, held by each partner.

Bonita's Share

A specific portion or allotment of a larger amount or entity that is designated or attributed to a person named Bonita.

Whole Business

A term often used in finance and economics referring to considering all aspects and operations of a business entity as a total entity.