5.Which one of the following is an example of investment income from securities?
A.
deferred tax assets
B.
gain on the sale of fixed assets
C.
interest earned from debt securities
D.
depreciation of
long−term
assets
6.Long−term investments ________.
B.
are investments in debt and equity securities that are highly liquid and that the investor intends to
sell in one year or less
7.When a company pays cash for a long−term investment in bonds, ________.
B.
equity remains unchanged
8.Janus, Inc. invests excess cash of $100,000 in corporate bonds on March 30, 2017. The bonds mature
20 years from the date of purchase. Janus plans to hold the bonds until maturity. How does the March 30,
2017 transaction affect the accounting equation?
A.
