During 2017, the market price of a short-trmpassive investment in equity securities declined. Which one of the following correctly reflects the effects on the financial statements as a result?
A) Current ratio and earnings per share decrease.
B) Current ratio and earnings per share increase.
C) Current ratio is unchanged and earnings per share increases.
D) Current ratio increases and earnings per share are unchanged.
Correct Answer:
Verified
Q1: Equity investments are:
A)investments in bonds of a
Q2: When a company accounts for an investment
Q3: Investments in equity securities are current assets
Q4: An investor owns passive equity investments
Q6: Passive investments in equity securities are:
A)readily marketable
Q7: Torborg Corp. purchased short-term passive investments
Q8: Passive investments in equity securities
A)are reported on
Q9: Passive investments in equity securities are:
A)actively 'traded'
Q10: Equity securities of Sanchez Inc. were
Q11: Passive investments in equity securities
A)are reported on
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