When a company acquires a long-term bond investment,by paying cash,total assets remain unchanged.

Name: When a company acquires a long-term bond investment,by paying cash,total assets remain unchanged.
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Question

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When a company acquires a long-term bond investment by paying cash, it is investing its cash in the form of a bond. This means that the cash balance decreases, but the bond investment increases by the same amount. Therefore, the total assets of the company remain unchanged.

When a Company Acquires a Long-Term Bond Investment,by Paying Cash,total