Coca-Cola Company owns 300 shares of Cisco Systems, and classifies the investment as a current asset, trading securities. The most likely reason Coca-Cola made this investment is to: a. Earn investment income and capital gains b. Establish a joint venture with Cisco Systems c. Exert a significant influence on Cisco Systems d. Facilitate activity along Coca-Cola’s supply chain
a. Earn investment income and capital gains Rationale: Trading securities are held as investments of temporarily idle cash, to provide investment income and gains in value.