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

question 68

Multiple Choice

Maurice Corporation invested $100,000 to acquire 20,000 shares of Delta Technologies,Inc.on March 1,2017.Delta pays a cash dividend of $0.25 per share on July 2,2018.The investment is classified as available-for-sale.Based on these two transactions,which of the following is true of the accounting equation as of July 2,2018?

• 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:

Beliefs

Convictions or acceptances that something exists or is true, especially without proof.

Inventory System

A method or process used by a business to track the quantity, status, and location of items within its inventory from acquisition to sale or usage.

Monitoring

Monitoring refers to the regular observation and recording of activities taking place in a project or system over time, often for the purpose of ensuring compliance with standards or the progress towards objectives.

Needs And Wants

Basic requirements for survival (needs) contrasted with desires that can be fulfilled through purchasing goods and services (wants).