When a company collects the face value of a long-term investm both assets and equity of the firm increase total assets and equity of the firm remain unchanged liabilities decrease and equity increases both assets and liabilities of the firm increase
When a company collects the face value of a long-term investm both assets and equity of the firm increase total assets and equity of the firm remain unchanged liabilities decrease and equity increases both assets and liabilities of the firm increase
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:When a company collects the face value of a long-term investment in bonds at maturity,
both assets and equity of the firm increase
total assets and equity of the firm remain unchanged
liabilities decrease and equity increases
both assets and liabilities of the firm increase
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