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ACCT 521 ADVANCED ACCOUNTS

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  • 20 terms

    Term:

    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

    Definition:

    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.

    • Intercorporate Investments: An Overview
    • 20 terms
    • Vocabulary for Intercorporate Investments: An Overview. Find, create, and access Balance Sheet, Acct 521, ......... flashcards with Course Hero.

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