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

Question

34. When a company receives interest revenue on a long-term investment in bonds, A) long-term assets decrease B) long-term assets increase C) current assets decrease D) equity increases 35. Derek's Financial Services, Inc. invested $27,000 to acquire 3,750 shares of Lance's Investments Inc. on March 15, 2013. This investment represents less than 20% of the investee's voting stock. On May 7, 2018, Derek's Financial Services sells 2,250 shares of Lance's Investments for $15,250. In the accounting equation on May 7,2018: A) total assets will remain unchanged B) total assets will decrease C) total liabilities will decrease D) total equity will decrease

Explanation / Answer

34. B long term asset increase (because bonds are long term so long term asset will increase).

35. D total equity will decrease (Because equity shares sold ).

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