Use the Following Information for Questions:
Terry Inc -When Preparing the Balance Sheet as at December 31, 2011

question 66

Multiple Choice

Use the following information for questions:
Terry Inc.purchased shares in three companies during the second quarter of 2011.They prepare interim financial statements each quarter and yearly statements as of December 31.Shown below are their investments in temporary investments for 2011. $\begin{array}{lrrrrrr}&\text { 2nd Qtr. } && \text { 3rd Qtr. } && \text { 4th Qtr. }\\\text { Investments } & \text { Cost } & \text { Market } & \text { Cost} & \text { Market } & \text { Cost} & \text { Market }\\\hline\text { Sunshine Co. shares } & \$ 43 & \$ 45 & \$ 43 & \$ 46 & \$ 43 & \$ 45 \\\text { New Ventures Inc. shares } & 101 & 99 & 101 & 105 & 101 & 103 \\\text { Good Day. shares } & 51 & 49 & 51 & 47 & 51 & 46\end{array}$
-When preparing the balance sheet as at December 31, 2011, temporary investments will be reported at:

• A)$194.
• B)$193.
• C)$198.
• D)$195

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Definitions:

Unemployment

The situation where individuals who are willing and able to work are not currently employed.

Inflation

The magnitude of growth in the overall price points for goods and services, weakening the efficacy of spending power.

Government Spending

The total amount of money expended by a government on various sectors, including infrastructure, education, defense, and social services.

Net Exports

The difference between a country's total exports of goods and services and its total imports of goods and services over a specified period.