Amount of long-term investments in corporate bonds

Assignment Help Accounting Basics

Reference no: EM131766105

Question: A business reports investments on its balance sheet. The amount of long-term investments in corporate bonds has remained stable in dollars and has decreased from 4.5 percent of total assets to 4.0 percent during the past three years. Are these investments a likely borrowing cause for last year?

A) Yes, investments are volatile and are often sold at a loss, causing a need to borrow.

B) Yes, investments obligate the business to provide additional financial support, representing a borrowing cause.

C) No, the business plans to hold the investments to maturity so they will not represent a borrowing cause until they are sold.

D) No, the amount of investments has not changed significantly, so they dont represent the borrowing cause

Reference no: EM131766105

Questions Cloud

What is the energy released in this reaction : What is the energy (in MeV) released in this reaction?

Benefits associated with adoption of an information system : Research should involve 12 participants who should investigate the benefits associated with adoption of an information system in a hospital.

How many kilograms of coal : How many kilograms of coal must be burned to produce the same energy as 1.5 kg of 235 92 U (235 on top, 92 on bottom)?

Discuss the cost-benefit relationship of internal controls : There is an ongoing debate about the cost-benefit relationship of internal controls and their ethical implications

Amount of long-term investments in corporate bonds : A business reports investments on its balance sheet. The amount of long-term investments in corporate bonds has remained stable in dollars and has decreased.

How much energy has this person absorbed : A 66-kg person is exposed to 84 mrem of a particles (RBE = 12). How much energy (in joules) has this person absorbed?

Write a proposal for implementing technology in a hospital : Write a proposal for implementing technology in a hospital? What are the benefits the hospital will enjoy?

How might we reconcile the world : How might we reconcile the world as it is with the existence of a benevolent Creator?

Discuss a cost formula for repairs and maintenance : Use the high-low method to estimate a cost formula for repairs and maintenance

User Account

All Pages